Countback Line - Entry
The count back line is used to create a short-term hurdle, which must be overcome before we can have any confidence of 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 as a stop loss tool. The fourth is related to the stop loss function when it is used as an exit tool.
The Guppy Count Back Line - Entry (CBL-E) is a short-term resistance or support line calculated, in a falling trend, by counting back three higher highs, and then projecting a horizontal line to the right. A close above this resistance line suggests the intermediate down trend has changed. Closes above or below the line are used to fine-tune entry and exit points. To reduce whipsaws the technique is used when a trend break has been signalled, initially by a trendline break or assess the trend change using a Guppy multiple moving average.
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.
Scripting Function: COUNTBACKLINE()
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 - Entry 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 - Entry 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 - Entry 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 - Entry 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, 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.
100% Line Style: Expands to display the line properties of the 100% line. The properties are identical to those listed for the Countback 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.