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List,
For the many that have asked for notes on Brian
Bell's presentation...here's the high points (I think).:
1. The "Bell Warning Line" differs from Chande's
VIDYA and Kaufman's Adaptive moving average
a. VIDYA and the
AMA: as the market speeds up, the indicator gets faster; as the market
slows, so does the indicator
b. BWL: as the
market speeds in a direction, the BWL slows down; as the market speed slow, the
BWL gets faster
2. In a consolidation, there are a lot of
swing highs and swing lows...in a strong move, there are no swing highs or swing
lows
3. Finding a swing high: Strength =
1: There must be at least one lower high on each side of the swing
high. Strength = 2: There must be at least two lower highs on each side of
the swing high bar.
4. Count how many bars since a swing high or swing
low has occurred.
5. The smoothing constant is inversely
proportional to the number of bars since a swing high or swing low
6. User specifies: "StartSC" - the
"starting smoothing constant" & "Sensitivity" - the "strength" of the swing
high and swing low bars
7. How to calculate the BWL:
bsHigh = bars since swing (Strength)
bsLow = bars since swing low
(Strength)
p = min(bsHigh, bsLow)
sc = StartSC / p
BWL = (1 - sc) * BWL(previous) + sc *
Price
Wow, another lagging indicator that behaves similar
to a 21 day simple moving average. Since the implementation of this
indicator is totally subjective and it's not used as a timing
device...personally, I can't find a use for it in my work.
I hope I didn't violate the spirit of this
presentation. Brian is a real pleasant guy. I think I have the
calculations correct. I took notes with a crayon and I spilled my gin and
tonic on the handout he supplied....so, this is my best shot.
Take care,
Steve
<A
href="http://www.cedarcreektrading.com";>www.cedarcreektrading.com
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