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TEMA Triple Exponential Moving Average
TEMA is a unique smoothing indicator developed by Patrick Mulloy.
It was originally introduced in the January 1994 issue of Technical Analysis
of Stocks & Commodities magazine. See also DEMA, a similar smoothing
method developed by Mr. Mulloy.
In this article Mr. Mulloy explains:
"Moving averages have a detrimental lag time that increases as the
moving average length increases. The solution is a modified version of
exponential smoothing with less lag time."
TEMA is an acronym that stands for Triple Exponential Moving Average.
However, the name of this smoothing technique is a bit misleading in that
it is not simply a moving average of a moving average of a moving average.
It is a unique composite of a single exponential moving average, a double
exponential moving average, and a triple exponential moving average that
provides less lag than either of the three components individually.
TEMA can be used in place of traditional moving averages. You can use
it to smooth price data or other indicators. Some of Mr. Mulloys original
testing of TEMA was done on the MACD. Oddly, he found that the faster
responding TEMA-smoothed MACD produced fewer (yet more profitable)
signals than the traditional 12/26 smoothed- MACD.
A custom indicator named "MACD (TEMA-smoothed)" is included with
MetaStock. This type of smoothing is certainly not limited to the MACD.
You may want to experiment on other indicators as well.
The parameters are specified at the time the indicator is plotted. You can
edit the parameters of an existing plot by right-clicking on the indicator and
choosing Properties from the shortcut menu.
Time Periods.
Enter the number of time periods to use when calculating the TEMA indicator.
The term "time periods" refers to days if the chart contains daily data, weeks
for weekly data, etc.
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Chande's Momentum Oscillator
rev. 01/06/97
The following are MetaStock formulas for Tuschar Chande's Momentum
Oscillator. For interpretation refer to the book The New Technical Trader,
by Tuschar Chande and Stanley Kroll.
CMO_1
Sum( If( C ,> ,Ref( C, -1 ) , ( C - Ref( C ,-1 ) ) ,0 ) ,14 )
CMO_2
Sum( If( C ,< ,Ref( C ,-1 ) , ( Ref( C ,-1 ) - C ) ) ,0 ) ,14 )
CMO_Final
100 * ( ( Fml( "CMO_1" ) - Fml( "CMO_2" ) ) / ( Fml( "CMO_1" ) + Fml(
"CMO_2" ) ) )
You could also combine the above three formulas into one formula.
The syntax would be:
100*((Sum(If(C,>,Ref(C,-1),(C-Ref(C,-1)),0),14))-
(Sum(If(C,<,REF(C,-1),(REF(C,-1)-C),0),14)))/
((Sum(If(C,>,Ref(C,-1),(C-Ref(C,-1)),0),14)+
(Sum(If(C,<,REF(C,-1),(REF(C,-1)-C),0),14))))
*** These formulas were constructed using 14 time periods, you can change
this by replacing every occurrence of 14 with your desired time period
value.
Regards,
Ton Maas
Ms-IRB@xxxxxxxxx
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-----Oorspronkelijk bericht-----
Van: rudolf stricker <rst@xxxxxxxxxxx>
Aan: metastock-list@xxxxxxxxxxxxx <metastock-list@xxxxxxxxxxxxx>
Datum: woensdag 12 augustus 1998 9:23
Onderwerp: Formulas for TEMA & CMO indicator?
>
>Because I want to use the TEMA and the CMO indicator in Excel, I would
>like to know the numerical formulas for these indicators to "program"
>them appropriately.
>Does anyone know, where to find these formulas? - Any hint is welcome.
>
>mfg rudolf stricker
>| Disclaimer: The views of this user are strictly his own.
>
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