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Your UThreshold and LThreshold are the first time I've seen the Input()
function used for this purpose. Good thinking. I'll steal that idea.
HHP
==================
Glen Wallace wrote:
>
> There was an overbought/oversold indicator described in the June 2000 Futures
> Magazine called the Psychological Index. It looked sort of interesting, so I
> wrote the MetaStock code for it:
>
> {Futures Magazine, Vol.29 No.6, June 2000, P.48}
> LookBack:= Input("Number of lookback periods", 2, 100, 12);
> UThreshold:= Input("Upper threshold (%)", 0, 100, 75);
> LThreshold:= Input("Lower threshold (%)", 0, 100, 25);
> UpDay:= If(CLOSE > Ref(CLOSE,-1), 1, 0);
> PsychIndex:= Sum(UpDay,LookBack) / LookBack * 100;
> PsychIndex; UThreshold; LThreshold
>
> The article described the standard lookback period as 12 bars with a level of
> 75% or higher being an indication of an overbought market and 25% or lower
> being an oversold market. Like most overbought/oversold indicators, it will
> give poor results in a strongly trending market, but perhaps using an ADX and
> trend direction filter, it might prove useful.
>
> On 5-minute bars in the bonds, you have to constantly adjust the thresholds
> for an upward or downward bias, but if you increase the lookback period and
> widen the signal levels for less frequent signals, the results were
> interesting.
>
> Regards.
> _______________________________________________
>
> System Tester code:
>
> Enter Long / Close Short
> -------------------------
> LookBack:= opt1;
> UThreshold:= opt2;
> LThreshold:= opt3;
> UpDay:= If(CLOSE > Ref(CLOSE,-1), 1, 0);
> PsychIndex:= Sum(UpDay,LookBack) / LookBack * 100;
> PsychIndex <= LThreshold
>
> Enter Short / Close Long
> -------------------------
> LookBack:= opt1;
> UThreshold:= opt2;
> LThreshold:= opt3;
> UpDay:= If(CLOSE > Ref(CLOSE,-1), 1, 0);
> PsychIndex:= Sum(UpDay,LookBack) / LookBack * 100;
> PsychIndex >= UThreshold
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