|
PureBytes Links
Trading Reference Links
|
Does anyone have an els or ela of the version of the Chaikin
Accumulation/Distribution Line described at Stockcharts.com that you could
send to me?
Thanks,
Vitas
-----------------------------------------------------------------
Chaikin choose to ignore the change from one period to the next and instead
focused on the price action for a given period (day, week, month). He
derived a formula to calculate a value based on the location of the close,
relative to the range for the period.
We will call this value the "Close Location Value" or CLV. The CLV ranges
from plus one to minus one with the center point at zero. There are
basically five combinations:
(((C-L)-(H-C))/(H-L))=CLV
1. If the stock closes on the high, the absolute top of the range, then the
value would be plus one.
2. If the stock closes above the midpoint of the high-low range, but below
the high, then the value would be between zero and one.
3. If the stock closes exactly halfway between the high and the low, then
the value would be zero.
4. If the stock closes below the midpoint of the high-low range, but above
the low, then the value would be negative.
5. If the stock closes on the low, the absolute bottom of the range, then
the value would be minus one.
The CLV is then multiplied by the corresponding period's volume and the
cumulative total forms the Accumulation/Distribution Line.
http://stockcharts.com/education/What/indicatorAnalysis/indic_AccumDistLine.
html
|