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TQuinn211@xxxxxxx wrote:
> From: xxxx
>
> This looks pretty interesting. However I am not familiar with the term
> "XBAR" - what
> is it?
>
> Pete
>
> Pete I am going to post my response to the forum as others may have similar
> questions,
>
> "XBAR" is a matematical term used to indicate we are referiring to some
> average value of x.
>
> XBAR indicator consists of 4 plots.
>
> 1) MyPrice2 = (OPEN+ High + Low + Close) / 4
>
> 2) AVGMyPrice2(LENGTH1)
>
> 3) AVGMyPrice2(LENGTH1) +Constant*(AvgTrueRange(LENGTH))
>
> 4) AVGMyPrice2(LENGTH1) -Constant*(AvgTrueRange(LENGTH))
>
> Since all the plots are based on average values of price, I call it an x-bar
> indicator.
>
> Pick up any good book on statistical process control and you will get
> tremendous insight as to the construction and the use of Statistics on
> processes that produce measurable values through time. As a side note you will
> find the constant used in the calculation in there.
>
> It will also explain why the work of John Bollinger is close but really not
> correct since the time component in his calculations is not taken into
> consideration.
>
> For those of you who have a difficult time with math, try looking for a book
> called
> "Understanding Chaos" by ..... (name escapes me) .
>
> Don't think you will look at price charts the same after absorbing the
> referred literature .
>
> All the best,
>
> Terry Quinn
Greetings Terry:
Your .gif and indicators are quite interesting indeed. But what is your definition
of Length, Length1, Constant, and Average True Range? Also, referring to your
.gif, could you give out a little more details as to the interpretations of the
linslope indicators. Thanks in advance and regards.
Have a good one
Jeff Harteam
Hong Kong
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