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Preston,
Excellent explanation. Learned at lot.
Regards,
Khalid
pumrysh <no_reply@xxxxxxxxxxxxxxx> wrote:
Sunil,
Before we get into an exploration you need to determine if the high-
low is really what you want.
The other day we got into a discussion about normalized indicators.
I introduced a normalizing/indexing formula which is:
{Normalized Indicator}
Ind:= {your indicator here};
Npds:=Input("periods to normalize",
1,500,48);
Norm:=(Ind-LLV(Ind,Npds))
/(HHV(Ind,Npds)
-LLV(Ind,Npds)
+.0000001)*100;
Norm{end}
If I use IND:= high-low; for the indicator what I get is a chart
that really has little value. During an uptrend for instance the
range between the high and low will decrease. Thus if I were looking
for signals I wouldn't get them.
If on the other hand I changed the formula and used IND:= close;
what I will get is an indicator that is much truer to the real trend.
Notice that the value of NORM is determined by indexing the highest
high values and the lowest low values of the indicator over a period
of time. That value can easily be changed from 48 to either 3 or 4.
In an exploration you must lock the values that are normally inputed
in an indicator. Thus you would need to change the exploration
formula to:
{Normalized Indicator for exploration}
Ind:= close;
Npds:= 4;
Norm:=(Ind-LLV(Ind,Npds))
/(HHV(Ind,Npds)-
LLV(Ind,Npds)+.0000001)*100;
Norm
I think you will find that 4 is a bit too sensitive and a better
alternative will be something greater than 5 which is a weeks worth
of trading. Think of this value as a lookback period for a moving
average. Would you really want to use something less than 5 which
would result in a lot of whipsaws.
Now that you are indexed or normalized it is much easier to
successfully trade simply by looking for values greater than or less
than 50 or whatever value you determine as your entry/exit points.
Once you have determined those values you could simply put the
indicator in column A and filter with column B being >50 and column
C as <50 .
Hope this helps,
Preston
--- In equismetastock@xxxxxxxxxxxxxxx, "SUNIL gupta"
<sunilgupta72@xxx> wrote:
>
> Dear Friends,
>
> I am new to metastock. Please can anyone help me with composing
formula for
> explorer for finding out which shares have been in lowest trading
range of
> last four days. I mean that day X's Trading range (high-low)
should be
> lowest of the last three trading seesions.
> --
> Sunil Gupta
>
>
> [Non-text portions of this message have been removed]
>
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