Countback Line - Stop Loss
The count back line is used to create a short-term hurdle, which must be overcome before we can have any confidence about a likelihood of a trend change. It consists of four applications. The first is as a trend change verification tool. The second is as an entry tool with a defined range of safe price levels. The third is a stop loss tool. The fourth is related to the stop loss function when it is used as an exit tool.
The Guppy Countback Line - Stop Loss rule uses the range activity of the stock to set a stop loss point. The range is the distance between the high and the low for the day. It is calculated using the Countback Line approach. Taking the most recent highest high in the intermediate term trend the stop loss point is calculated by counting back three lower bars. The horizontal line drawn at the bottom of the third bar is the stop loss point. This stop loss is not related to the 2% rule. The line suggests the conditions where the trend may be weakening. When used with open profits, it provides an exit signal to protect those profits.
To add the tool to your chart, select the tool from the Guppy tool group, and left-click on the bar on the chart you wish to calculate the tool from. Next, extend the lines and left-click again where you want it to end. Optuma will then draw the tool using the default settings.
Actions & Properties
Add Price Alert: Selecting this action will set a Price Alert at the value the Horizontal Line is positioned.
Add to Toolbar: Adds the selected tool to your custom toolbar.
Apply Settings to All: When multiple Countback Line - Stop Loss tools have been applied to a chart, page or workbook, this action can be used to apply the settings of the one selected to other instances of the tool. This is a great time saver if an adjustment is made to the tool - such as line colour - as this allows all the other Countback Line - Stop Loss tools in the chart, page or entire workbook to be updated instantly.
Copy Tool: Allows you to copy the selected tool, which can then be pasted onto a different chart window.
Move to Back: If the tool is displaying in front of other tools or indicators clicking this action will move the tool view to the background.
Move to Front: If the tool is displaying behind other tools or indicators on the chart, clicking this action will bring the tool to the forefront.
Restore Default Settings: Click this action if you have adjusted the default settings of the tool, and wish to return to the standard properties originally installed with Optuma.
Save Settings as Default: If you have adjusted any of the tool’s properties (colour, for example) you can save the adjustments as your new default setting. Each time you apply a new Countback Line - Stop Loss to a chart, the tool will display using the new settings.
Delete: Deletes the tool from the chart.
Tool Name: Allows you to adjust the name of the tool, as it's displayed in the Structure Panel.
Bars: Sets how many bars are used in calculating where the count back line is to be drawn.
Show Prices: When selected the price values will display for each Count Back Line.
Label Alignment: The price label can be placed in different positions in relation to the division lines. There are 8 options available: Top Left, Top Right, Centre Top, Bottom Left, Bottom Right, Centre Bottom, Centre Left and Centre Right.
Font Size: If Show Label is selected you can adjust the size of the text displayed for the label. Moving the slider bar to the right increases the font size.
Base Line Style: This option expands to show the following:
- Line Style - The Line Style property allows you to adjust the type of the base line displayed. There are 8 options available: Solid, Dots, Dash, Dash Dots, Long Dash, Long Dash Dot, Long Dash Dot Dot, Stippled.
- Line Width - Allows you to adjust the width of the line. Moving the slider bar to the right increases the thickness of the line.
- Line Colour - Allows you to select the colour of the line. Clicking on the drop down arrow will display a colour swatch. Locate the desired colour and left-click it once to select it.
- Extend Left - Check this box to extend the Base Line to the left.
- Extend Right - Check this box to extend the Base Line to the right.
- Base Line Visible - Un-tick this checkbox to hide the Base Line from the chart.
Countback Line Style: Expands to display the line properties of the Countback line. The properties are identical to those listed for the Base Line.
Tool Transparency: Use this slider bar to adjust the transparency of the tool. Moving the slider to the left will increase the transparency of the tool.
Visible: Un-tick this checkbox to hide the tool from the chart.
For further information relating to the application of this tool, visit Guppy Traders.