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I would like give everyone an intutive feel for what Correlation is
doing.
*** think of a chart of CLOSE vs TIME that is sloping upward
*** the progress of the price is noisy - up a little - dn a little
*** now think of drawing an ellipse around the data points
1. if the ellipse is long and skinny and sloping upward, Corel is
close to 1.0
2. if the ellipse is more like a circle, corel is close to zero
3. if the ellipse is long and skinny and sloping downward corell is
close to -1.
This is actually how the equation for Corel is derived - by fitting
an ellipse around the points in the plot.
USAGE:
I have an exploration using Correl > 0.90. These stocks are under
consistent accumulation and are buy candidates.
--- In amibroker@xxxxxxxxxxxxxxx, Graham <kavemanperth@xxx> wrote:
>
> Can anyone tell me what Correlation is actually calculating
> I have read the description in help files but am still confused what
> it is actually calculated.
> In what way is it actually comparing the 2 arrays.
>
> --
> Cheers
> Graham
> AB-Write >< Professional AFL Writing Service
> Yes, I write AFL code to your requirements
> http://e-wire.net.au/~eb_kavan/ab_write.htm
>
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