Dr Alexander Elder followers may also be interested in
the very powerful and versatile MACD-H Divergence kit:

http://www.metastocktools.com/MACDH/MACDHdiverg.htm
http://www.metastocktools.com/MACDH/96diverg.htm


MetaStock -> Tools -> Indicator Builder -> New
-> Copy and paste formula below.


================================
Trailing Stop - Elder's SafeZone
================================
---8<------------------------------------------

{Dr Alexander Elder's SafeZone trailing stop v3

 SafeZone types:

  [1] Uses upside/downside penetration days as
       suggested by Dr Elder in his book;

  [2] Uses up/down days (instead of
       upside/downside penetration days)
       to match book's incorrect companion
       spreadsheet.

  Triggers: Long (+1) & Short (-1) signals at
   crossover of user-defined trailing stops.

 ©Copyright 2003-2007 Jose Silva
  For personal use only.
  http://www.metastocktools.com }

{ User inputs }
coefficient:=Input("SafeZone coefficient",
 0,10,2.5);
bkpds:=Input("Lookback periods",1,260,10);
pds:=Input("Trend EMA periods",2,260,21);
adv:=Input("plot:  [1]Today's SafeZone,  [2]Tomorrow's stop",1,2,1)-1;
type:=Input("SafeZone type:  [1]Book,  [2]Spreadsheet",1,2,1);
plot:=Input("SafeZone:  [1]Stop,  [2]Long+Short,  [3]Signals",1,3,1);

{ Downside penetrations }
DwSidePen:=
 If(type=1,Mov(C,pds,E)>Ref(Mov(C,pds,E),-1),1)
 AND L<Ref(L,-1);
DwSideDiff:=If(DwSidePen,Ref(L,-1)-L,0);
DwPenAvg:=Sum(DwSideDiff,bkpds)
 /Max(Sum(DwSidePen,bkpds),.000001);
StLong:=Ref(L-DwPenAvg*coefficient,-1);
StopLong:=If(C<PREV,StLong,Max(StLong,PREV));

{ Upside penetrations }
UpSidePen:=
 If(type=1,Mov(C,pds,E)<Ref(Mov(C,pds,E),-1),1)
 AND H>Ref(H,-1);
UpSideDiff:=If(UpSidePen,H-Ref(H,-1),0);
UpPenAvg:=Sum(UpSideDiff,bkpds)
 /Max(Sum(UpSidePen,bkpds),.000001);
StShort:=Ref(H+UpPenAvg*coefficient,-1);
StopShort:=If(C>PREV,StShort,Min(StShort,PREV));

{ Stop signals }
entry:=Cross(C,Ref(StopShort,-1));
exit:=Cross(Ref(StopLong,-1),C);

{ Clean signals }
Init:=Cum(IsDefined(entry+exit))=1;
bin:=ValueWhen(1,entry-exit<>0 OR Init,
 entry-exit);
entry:=bin=1 AND (Alert(bin<>1,2) OR Init);
exit:=bin=-1 AND (Alert(bin<>-1,2) OR Init);

{ Plot on price chart }
If(plot=1,Ref(If(bin=1,stopLong,stopShort),
 -1+adv),If(plot=2,Ref(stopLong,-1+adv),0));
If(plot=1,Ref(If(bin=1,stopLong,stopShort),
 -1+adv),If(plot=2,Ref(stopShort,-1+adv),
 entry-exit))

---8<------------------------------------------


http://www.metastocktools.com