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Steve!
Can you translate the formulas to Metastock language? Also, did you
read about an indicator called a "Volume-Weighted MACD"? David Penn's review
of John bollinger's new vidotapes in the December 2001 issue of "Technical
Analysis of Stocks and commodites mentions this indicator. Using Penn's
own words,
"Taking each days price times the volume, and then adding each day
and dividing by the number of days, produces
the volume-weighted moving averages. Waht the VWMACDis asking,
explains Bollinger, is whether the trend is supported by volume. If it
is, then VWMACD is strong. If it isn't, the VWMACD will highlight the underlying
weakness."
Let's take a stab at figuring out the formula!!!
Steve Karnish wrote:
Larry, It's
neither. It's Brian Bell's presentation. Take
care, Steve
<blockquote
style="BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
----- Original Message -----
<div
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
Larry
To: metastock@xxxxxxxxxxxxx
Sent: Thursday, April 25, 2002 1:39
PM
Subject: Re: Brian Bell's BWL
Steve,
Is this Amibroker code or Metastock code?
Steve Karnish wrote:
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 / pBWL
= (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, Stevewww.cedarcreektrading.com
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