improvements for "catscan"

["Riccardo Ronco" <rrb3@xxxxxxxxxxxxxx>]

first the user function:


{ Function: ChoppyIndex }
If HighestBar(TrueHigh,30) <= LowestBar(TrueLow,30)
then ChoppyIndex =   10*(Highest(TrueHigh,30)-Lowest(TrueLow,30))
else ChoppyIndex = - 10*(Highest(TrueHigh,30)-Lowest(TrueLow,30));

why make things more complicated?

I'd like to see something like this:

ChoppyIndex = 100*(Highest(TrueHigh, Length)/Lowest(TrueLow, Length));

so the indicator is based on a percentage value... and good to compare
apples with apples and to see if there are any regularities in parameters
for different commodities.

then the length for choppyindex could be the same also for the channel
lenght and/or the length of the truerange.

Catscan (if it is the right one) seems to me to be a melting of 2 systems:

- the turtle channel breakout
- the volatility breakout system (on next open!)

The choppy index is simply a trend indicator in that measures the distances
between the channel breakout bands. BUT nothing is said about the space
inside not covered by prices...

What about xma1 and xma2? If we are in a choppy market we USE bigger bands
not to be trapped by false signals, while in a trend situation the breakout
(the good one) is usually a quick one and should be taken immediately.

I'd make the channel breakout an adaptive version.

Of course also the definition of choppy market could be semplified since the
degree of trendiness is based now on a percentage base we do not need the
sign concept so:

ChoppyMarket =  -ChopLimits <= CI and CI <= +ChopLimits; {TRUE IF CHOPPY
MARKET}

becames

ChoppyMarket =  CI <= ChopLimits; {TRUE IF CHOPPY MARKET}

simplifying the whole thing.

Regards,

Riccardo Ronco
(BNA London)