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Owen,
Found the reference in Tushar Chande's "The New Technical Trader",
p.172, ch.7, section titled "Anticipating Prices for a Risk Control
Plan". It is pretty much as I wrote, but note that these are target
prices for the next day, they are not profit targets. Chande also
mentions that you could use
ATR-10 instead of A if you wish, and speaks of "some multiple of A".
IOW, experiment and see what works for you.
HHP
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HHP wrote:
> Owen,
>
> A:=Mov(Abs(C-Ref(C,-1)),10,S);
> This is a ten-day SMA of the day-to-day net change in closing prices,
so
> I would take TPH1 and TPL1 as indicating the probable range of the
next
> day's close; TPH2 and TPL2 might indicate the extreme range and could
be
> used as an entry point in the desired direction or a stop in the
> undesired direction.
>
> Could you give a reference for Chande? The web page is that of the
ISP;
> something additional is needed.
>
> HHP
>
Owen Davies wrote:
> Am I missing something, or does the following
> formula for Tushar Chande's target prices, pulled
> from www.nt-tech.com.au, forcast today's high
> and low only after today's close?
>
> A:=Mov(Abs(C-Ref(C,-1)),10,S);
> TPH1:=C+A;
> TPH2:=C+(2*A);
> TPL1:=C-A;
> TPL2:=C-(2*A);
> TPH1;
> TPH2;
> TPL1;
>
> Somehow, I don't think that's what Chande had in mind.
>
> Owen Davies
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