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Ross,
> Does anyone have the code for the old PGO (Pretty Good Oscillator)?
>
> Been through the FTP at TradeStation and it doesn't appear to be
> there. Just curious is all.
I remember that. Mark Johnson had deliberately obfuscated it with
bizarre formulas like Tangent(.022199645) and sums of Fibonacci
constants. After poring through it a while, one discovers that the
whole thing reduces to one line of code! Mark confirmed to me that
I had figured out the puzzle.
PGO = (close - average(close, length)) / xAverage(TrueRange, length);
...where length=89 in Mark's version. If you don't believe they're
the same, plot the original code (if you have it, I don't anymore)
against the 1-line version.
After distilling it down to one line, you can see what's going
on. PGO measures the price velocity against the daily noise,
expressing the measurement as a ratio. There are several ways to
measure velocity. Instead of close-average(close,N), one might
use momentum. Also one could measure daily noise differently; for
example substitute the xAverage(TrueRange,N) with AvgTrueRange(N)
and it would still work about the same.
--
,|___ Alex Matulich -- alex@xxxxxxxxxxxxxx
// +__> Director of Research and Development
// \
// __) Unicorn Research Corporation -- http://unicorn.us.com
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