Re: Brian Bell's BWL

["T.E.M. Lockefeer" <sky40912@xxxxxxxxx>]

Thanks Steve
 
Theo
 
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  style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From: 
  Steve 
  Karnish 
  To: <A title=amibroker@xxxxxxxxxxxxxxx 
  href="mailto:amibroker@xxxxxxxxxxxxxxx";>amibroker@xxxxxxxxxxxxxxx ; <A 
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  href="mailto:metastock@xxxxxxxxxxxxx";>metastock@xxxxxxxxxxxxx ; <A 
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  href="mailto:realtraders@xxxxxxxxxxxxxxx";>realtraders@xxxxxxxxxxxxxxx 
  
  Sent: Thursday, April 25, 2002 3:21 
  PM
  Subject: Brian Bell's BWL
  
  List,
   
  For the many that have asked for notes on Brian 
  Bell's presentation...here's the high points (I think).:
   
  1. The "Bell Warning Line" differs from Chande's 
  VIDYA and Kaufman's Adaptive moving average 
      a.  VIDYA and the 
  AMA:  as the market speeds up, the indicator gets faster; as the market 
  slows, so does the indicator
      b.  BWL:  as the 
  market speeds in a direction, the BWL slows down; as the market speed slow, 
  the BWL gets faster
   
  2.  In a consolidation, there are a lot of 
  swing highs and swing lows...in a strong move, there are no swing highs or 
  swing lows
   
  3.  Finding a swing high:  Strength = 
  1:  There must be at least one lower high on each side of the swing 
  high.  Strength = 2: There must be at least two lower highs on each side 
  of the swing high bar.
   
  4. Count how many bars since a swing high or 
  swing low has occurred.
   
  5.  The smoothing constant is inversely 
  proportional to the number of bars since a swing high or swing 
low
   
  6.  User specifies:  "StartSC" - the 
  "starting smoothing constant" & "Sensitivity" - the "strength" of the 
  swing high and swing low bars
   
  7.  How to calculate the BWL:  
  
   
  bsHigh = bars since swing (Strength)
  bsLow = bars since swing low 
  (Strength)
  p = min(bsHigh, bsLow)
  sc = StartSC / p
  BWL = (1 - sc) * BWL(previous) + sc * 
  Price
   
  Wow, another lagging indicator that behaves 
  similar to a 21 day simple moving average.  Since the implementation of 
  this indicator is totally subjective and it's not used as a timing 
  device...personally, I can't find a use for it in my work.
   
  I hope I didn't violate the spirit of this 
  presentation.  Brian is a real pleasant guy.  I think I have the 
  calculations correct.  I took notes with a crayon and I spilled my gin 
  and tonic on the handout he supplied....so, this is my best shot.
   
  Take care,
   
  Steve
  <A 
  href="http://www.cedarcreektrading.com";>www.cedarcreektrading.com
   
   
   
   
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