|
PureBytes Links
Trading Reference Links
|
Larry,
I enjoy your enthusiam for this indicator, but I
thought a 21 day simple moving average was just as effective for how he was
using it as a exit tool. I trade about a "light year" away from Brian's
methods. Also, I'm not a code writer. Maybe someone on this
list has already taken a stab at it. Perry Kaufman's adaptive moving
average will do the same trick.
I love John Bollinger's work and I've been a fan
for many years. I hate volume...never found a credible way to combine it
into a mechanical system. That doesn't mean that there are not good volume clues
out there.
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: <A
href="mailto:metastock@xxxxxxxxxxxxx";
title=metastock@xxxxxxxxxxxxx>metastock@xxxxxxxxxxxxx
Sent: Thursday, April 25, 2002 11:24
PM
Subject: Re: Brian Bell's BWL
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:
<FONT
size=-1>Larry, It's
neither. It's Brian Bell's presentation. <FONT
face=Arial>Take care, <FONT
face=Arial>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:
<A href="mailto:amernick@xxxxxxxxx";
title=amernick@xxxxxxxxx>Larry
To: <A
href="mailto:metastock@xxxxxxxxxxxxx";
title=metastock@xxxxxxxxxxxxx>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, <FONT
face=Arial>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 <FONT
face=Arial>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. <FONT
size=-1>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 <FONT
size=-1>6. User specifies: "StartSC" - the "starting
smoothing constant" & "Sensitivity" - the "strength" of the swing
high and swing low bars <FONT
size=-1>7. How to calculate the BWL: <FONT
face=Arial>bsHigh = bars since swing (Strength)bsLow =
bars since swing low (Strength)p = min(bsHigh, bsLow)sc = StartSC / pBWL
= (1 - sc) * BWL(previous) + sc * Price <FONT
face=Arial>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. <FONT
face=Arial>Take care, <FONT
size=-1>Steve<A
href="http://www.cedarcreektrading.com";>www.cedarcreektrading.com
|