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John,
Yes, it is worth your time. But why bother with the ADX? Why not
adaptively change the length of the indicator itself to account for trending
periods and variations in the durations of up-down cycles?
I'll post some more info on how to do this sort of thing...
For now: Here's the smoother alternative you, Robert, and Lynn requested:
Input: Price(TypicalPrice), LRSLen(14), AvgLen(10);
Plot1(LinearRegSlope(Average(Price,AvgLen),LRSLen), "Ham Hock");
Again, vary the lengths as desired to achieve your preferred trade-off
between response and smoothness. Or, better yet, develop a formula for the
lengths that causes them to adapt dynamically to the price action.
All the best,
The Omega Man
Hammin' it up.
-----Original Message-----
From: joachim@xxxxxxxxxxxx <joachim@xxxxxxxxxxxx>
To: Trader J <editorial@xxxxxxxxxxxxx>
Date: Thursday, August 27, 1998 10:37 PM
Subject: Re: Indicator (Take II)
You make a good point about the thick plot line.
The indicator does though make for an interesting piece of work. I have
looked
at it and used ADX as a filter and it does look like it might be worth a
longer
look.
John
Trader J wrote:
> John,
>
> There are a lot of ways to smooth something like this... I'll play with a
> few options and send you some ideas.
>
> One thing you'll want to notice is the use of the thick plot line at
> www.axom.com/commodities . Using such a thick line to plot his indicator
is
> one way that this guy has hidden some of the minor fluctuations in his
> indicator.
>
> All the best,
>
> The Omega Man (TM)
>
> -----Original Message-----
> From: joachim@xxxxxxxxxxxx <joachim@xxxxxxxxxxxx>
> To: Trader J <editorial@xxxxxxxxxxxxx>
> Date: Thursday, August 27, 1998 12:34 AM
> Subject: Re: Indicator (Take II)
>
> Trader J....... this is an interesting indicator you've posted. I checked
> the
> web site and notice that the indicator must have a smoothing factor. I am
> not a
> coder. Where and how would you insert some code to add a smoothing
factor.
> This would reduce the timeliness but would make for a smoother oscillator.
>
> John
>
> Trader J wrote:
>
> > As Phil wrote:
> >
> > << Does anyone have any idea what the indicator-system is on
> > http//www.axom.com/commodities >>
> >
> > Phil,
> >
> > Here's a better solution than the one I posted earlier:
> >
> > First, create a User Function as follows:
> >
> > Input: Price(numericseries), Length (numeric);
> >
> > HamMan = iff(BollingerBand(Price,Length,2)[1] -
> > BollingerBand(Price,Length,-2)[1] > 0, 100*(Price -
> >
>
BollingerBand(Price,Length,-2)[1])/(BollingerBand(Price,Length,2)[1]-Bolling
> > erBand(Price,Length,-2)[1]),50);
> >
> > Next, create the indicator as follows:
> >
> > Input: Price(TypicalPrice), Length(10), AvgLen(10);
> >
> > Plot1(Average(HamMan(Price,Length),AvgLen), "Ham Man");
> >
> > That should pretty well duplicate what you see at
> > http://www.axom.com/commodities/ .
> >
> > All the best,
> >
> > The Omega Man (TM)
> >
> > Spiral sliced and sugar cured.
> >
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