|
PureBytes Links
Trading Reference Links
|
Slope is simply rise over run.
If price rises 2 points over 2 bars then slope = Rise/Run or 2/2 = 1
If prices rises -5 points over 10 bars then slope = -5/10 or -.5
When you input price, you usually hardcode Open High, Low or Close.
So if you select Close, it is getting the input price from the close of one
bar to the close of the next or to the close of the Run you are measuring.
This will be true if you have the bars all scrunched together on the screen
so the trendline is almost vertical or
you have the bars spaced so far apart that the trendline is almost
horizontal.
I was incorrect earlier in assuming the popup window that tells you the
angle of a trendline was the equivalent of the LinearRegAngle function.
It is not and a person should totally ignore the popup window that tells you
the angle of a trendline when you hold the left click on it.
It is in relation to the screen and not price. (Worthless)
The actual LinearRegAngle function works in the same manner as slope, taking
into effect price and time as well, it just outputs in degrees instead.
You just need to know what unit of measure constitutes 1 measurement of rise
or the equal unit between the X and Y axis.
I have found that on the ES ,1 point is their equil unit of measure per 1
bar of time. So if price rises 1 point over 1 bar the angle = 45.
This, like slope will remain constant no matter what bar spacing is used.
If prices fall 10 points over 10 bars, then angle = -45.
-------Original Message-------
From: jack zaner
Date: Wednesday, December 10, 2003 4:22:26 PM
To: Jimmy Snowden; Omega-list@xxxxxxxxxx
Subject: Re: Re[2]: TL Angle function
Hi Jimmy: My understanding of slope is that it requires a measure which
must include the relationship of x to y axes. I don't believe that slope
can be determined merely from the ratio of one number to another. Slope
requires two dimensions.
Regards, Jack.
----- Original Message -----
From: "Jimmy Snowden" <jhsnowden@xxxxxxx>
To: "jack zaner" <jzaner@xxxxxxxxxxxx>; <Omega-list@xxxxxxxxxx>
Sent: Wednesday, December 10, 2003 1:57 PM
Subject: Re[2]: TL Angle function
> How about if you are computing slope in a system or indicator and
> using price or some value perhaps from an indicator. All you have
> there is two values or more and bars. Each bar is simply a unit. So
> you have rise over run. Or sometimes drop over run. No chart scaling
> to it and time is always the same unit.
>
> Best regards,
> Jimmy Snowden
> mailto:jhsnowden@xxxxxxx
>
>
> Wednesday, December 10, 2003, 3:49:17 PM, you wrote:
>
> jz> Alex: The slope is dependant upon scale. To quote Bill Eckhardt in
the
> jz> "New Market Wizards", ". . . it would become abundantly clear that the
slope
> jz> value depends directly on the choice of units and scales for the time
and
> jz> price axes." Thus a change in these values could result in different
slopes
> jz> (and angles) between any two points.
> jz> Regards, Jack
> jz> ----- Original Message -----
> jz> From: "Alex Matulich" <alex@xxxxxxxxxxxxxx>
> jz> To: <omega-list@xxxxxxxxxx>
> jz> Sent: Wednesday, December 10, 2003 1:11 PM
> jz> Subject: Re: TL Angle function
>
>
> >> Michael:
> >> >I charted a stock and determined the angle of a trendline. Then I
> >> >multiplied by 10 the stock data, and the same trendline --that is,
> >> >connecting the same two high bars--produces a different angle.
> >> >
> >> >What does this say about trendlines?
> >>
> >> It says only that the angle isn't as significant as the slope. The
> >> slope between two points will be the same no matter how your chart is
> >> displayed (but if you multiply all your data by 10, the slope will be
> >> multiplied by 10 also).
> >>
> >> -Alex
> >>
>
>
>
>
>
> Outgoing mail scanned by Norton
>
>
>
.
|