by davidf515 » Wed Oct 05, 2011 5:46 pm
Apprentice,
This looks very interesting, but I like to make sure that I understand an indicator before I use it.
As I see it, if the setting is: Step = 1, Max = 100, using MVA, then what's happening is that it's taking the 1 period MVA (Current price) and comparing it to the 2 period MVA. If the more recent (1period) is higher than the 2 period, then a +1 is generated. If the more recent is lower, then a -1 is generated. The 2 period SMA is then compared to the 3 period SMA, the same analysis is done, and either a -1 or a +1 is generated. This continues until all of the individual comparisons are made ("x" period MVA vs "x+1" period MVA) up to the max (99 period vs. 100 period SMA). If a step of 2 is used, then the comparisons would be between the 2 period vs. 4 period, 4 period vs. 6 period, etc up to 98 period vs. 100 period. Once all of this is done, the Pluses are counted (Up Number) and the Minuses are counted (Down Number) and each is charted. The Trend line is simply the positive Up number plus the negative Down number. I hope that covers it.
If the above is true, then I have one observation and 2 requests:
Observation: It seems that all three lines are saying the same thing. The Up and Down each oscillate between 0 and the max or min indentically (they're always same same distance from each other), and the Trend oscillates between each extreme. Realistically, you could eliminate any 2 of the lines and still get the same information. Although, the current configuration of 3 lines DOES make it easier to see when the extremes are being reached, so maybe that IS the way to go.
Requests:
1: Is it possible to indicate the current level of the Trend line on the right of the chart, like a standard price chart does with the current price?
2: Would it be possible to create an ALERT that signals when one of the lines (user defined) reaches a certain level near each of the extremes (again, user defined)?
If either or both are possible, I'd be happy to re-request them in the appropriate forum.
I have been playing around with this indicator and it seems you may have a winner here! Excellent job!
Thanks again for everything you do!