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The formula for converting exponential percentages to time periods is:
Time Periods= (2 / %)-1
Time periods to exponental percentages is:
Exponential Percentages= 2 / time peiods + 1
This is taken from the book Technical Analysis from A to Z by Steven B.
Achelis.
You should be able to access this from the Help Index.
An exponential moving average is calculated by applying a percntage of
today's closing price to yesterday's moving average value.
Al Taglavore
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> From: John Adair <xjadair@xxxxxxxxxxxx>
> To: metastock@xxxxxxxxxxxxx
> Subject: RE: Indicator formula structure
> Date: Tuesday, April 17, 2001 11:12 AM
>
> Hi Corey
> I do not understand where the 0.15 and 0.075 comes from. Would you
please
> explain
>
>
> -----Original Message-----
> From: owner-metastock@xxxxxxxxxxxxx
[mailto:owner-metastock@xxxxxxxxxxxxx]On
> Behalf Of C.S.
> Sent: Monday, April 16, 2001 8:03 PM
> To: MetaStock List
> Subject: Re: Indicator formula structure
>
> The majority of the stuff below is from MS online help.
>
> The MACD is the difference between a 26-day and 12-day exponential moving
> average. A 9-day exponential moving average, called the "signal" (or
> "trigger") line is plotted on top of the MACD to show buy/sell
> opportunities.
>
> 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.
>
> Most analysts (including Equis International's) say that the MACD
indicator
> is "the difference between 12-day and 26-day exponential moving
averages."
> However, the indicator is really the difference between 0.15 and 0.075
> exponential moving averages (whereas, when expressed in decimal form, the
> 12- and 26-day exponential moving averages are actually 0.153846 and
> 0.076923 exponential moving averages). See Moving Average Calculation
> Methods for more information on exponential moving average calculation
> methods.
>
> EXAMPLE The formula "macd()" returns the value of the MACD indicator
(i.e.,
> the solid line). The formula "mov(macd(),9,E)" returns the value of the
> MACD's signal line (i.e., the dotted line).
>
> Due to these minor differences in the exponential values, the following
> formula is slightly different than the predefined MACD indicator.
Remember
> that you can plot the true MACD indicator using the macd() function (see
> MACD).
> mov( close, 12, E) - mov( close, 26, E)
> The MACD's trigger (which is a 9-day exponential moving average of the
MACD
> indicator) can be calculated as shown below:
> mov( macd(), 9, E)
>
> mov( close, 12, E) - mov( close, 26, E) is
> Tema(C,shortperiods)-Tema(C,longperiods);
> mov( macd(), 9, E) is Mov(Tema(C,shortperiods) -
> Tema(C,longperiods),signal,E)
>
> -Corey
>
> ----- Original Message -----
> From: "Greg Haworth" <GregHaworth@xxxxxxxxxxxxxxxxxx>
> To: <metastock@xxxxxxxxxxxxxxxxxx>
> Sent: Monday, April 16, 2001 12:18 PM
> Subject: Indicator formula structure
>
>
> > Newbie Question
> >
> > I just started playing around with MS, so please excuse what will seem
> like
> > a "stupid" question.
> >
> > I don't quite grasp the structure of the formulas. I can't seem to
find
> it
> > in the manuals, is there some kind soul out here that can direct me in
> the
> > right direction? I am specifically stumped trying to create a specific
> > period MACD. I tried modifying the canned DEMA MACD formula.
> >
> > Here is where the structure eludes me. I understand short, long, and
> > signal periods (i think! short MA, Long MA, and averaging period) but
why
> > are there three terms in the brackets instead of just one??
> >
> > I would take any guidance that can be offered -- i am really just a
little
> > overwhelmed.
> >
> > regards/greg
> >
>
>
>
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