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Thanks, Ben. Actually, I think the timeline of development for Arms'
indicators is Equivolume, then Ease of Movement, then Volume Adjusted
Moving Average. Regarding the latter, no one has coded it successfully
for TS (to my knowledge), but it is included in Metastock 5.1. You may
want to have a look at
http://trends-online.com/ind15691.htm#Volume Adjusted Moving Average
this may be useful to you. HTH.
regards,
Monte
Ben Anderson wrote:
>
> To Monte, Paul, Neville and others that sent direct emails:
>
> Monte, this is not the Arms' Ease of Movement Value formula
>
> The formula I was experimenting with is simply:
> Plot1: IFF (C * V <> 0, (C * V) / V,1)
> Plot2: Average (Plot1,50)
>
> Some background. I only trade Stocks: One of my charts, Price is on a
> log scale and OBV runs on top of Volume bars. My hope is that the OBV 1
> bar line helps me understand what is happening with Price and Volume.
> But, Pull this up on SUNW weekly. You will see that while Close has
> fallen from 64 and change to 22.25 yesterday, OBV has continued in a
> flat range. Thus I am looking for an indicator that gives me more
> sensitive price & volume information.
>
> After entering the formula above I plotted it on top of the Volume Bars
> and OBV. It was certainly more sensitive to the Price Trend, but I had
> occasional spikes in low volume stocks. That is when I wrote the email
> to this list.
>
> Update:
> a. As Neville pointed out: If I plot the formula in the Price subgraph,
> and switch from log to linear scale, the indicator is practically the
> same as the close.
>
> b. When I plot the formula in the Volume subgraph on SUNW weekly, it
> makes a strong statement that I need an indicator that is more
> responsive to Price and Volume than OBV.
>
> C. But what Price/Volume indicator to use: I stopped using Money Flow
> Index because of erratic results. ex. On the same SUNW chart the 14 day
> money flow index was in a steep down trend from 3/10/99 to 10/15/99,
> while SUNW Close was rising before, during and after that time period.
>
> Any suggestions would be appreciated.
>
> And thanks for your help. Ben
>
> "Monte C. Smith" wrote:
>
> > I didn't read the feb 2000 and 1 issue. Is it from Arms' formula?
> >
> > Ben Anderson wrote:
> > >
> > > I am trying to create the easy language formula for the Volume-weighted
> > > moving average indicator that was in the February 2001 TASC. The
> > > following works, (doesn't turn the indicator off when a zero is in the
> > > data field), but that zero creates a big spike down on the chart. Is
> > > there a way to correct the spikes?
> > >
> > > IFF (C * V <> 0, (C * V) / V,1)
> > >
> > > Thanks for your help, Ben
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