Rank: Advanced Member
Groups: Moderators, Registered, Registered Users, Subscribers
Joined: 10/8/2010(UTC)
Posts: 1,960
Thanks: 92 times
Was thanked: 155 time(s) in 150 post(s)
|
Melvin E. Dickover's article, “Evidence Based Support and
Resistance”, introduced two new volume based indicators. The formulas for the indicators are listed
below:
Stress:x:= Input("Standard Deviation Periods", 5, 120,
60);
y:= Input("Number of Deviations", 0, 4, 2);
av:= Mov(V, x, S);
sd:= Std(V, x);
relVol:= (V-av)/sd;
If(relVol>y, relvol, 0);
If(relvol<=y, If(relvol>0,relvol, 0),0);
Freedom of Movement
x:= Input("Standard Deviation Periods", 5, 120,
60);
y:= Input("Number of Deviations", 0, 4, 2);
av:= Mov(V, x, S);
sd:= Std(V, x);
relVol:= (V-av)/sd;
aMove:= Abs((C-Ref(C,-1))/Ref(C,-1));
theMin:= LLV(aMove,x);
theMax:= HHV(aMove,x);
denom:= If(theMax-theMin = 0, -1, theMax-theMin);
theMove:= 1 +((aMove-theMin)*(10-1))/Abs(denom);
MinV:= LLV(relVol,x);
MaxV:= HHV(relVol,x);
denomv:= If(MaxV-MinV = 0, -1, MaxV-MinV);
theVol:= 1 + ((relVol-MinV)*(10-1))/Abs(denomV);
vByM:= theVol/theMove;
avF:= Mov(vByM, x, S);
sdF:= Std(vByM, x);
theFoM:= (vByM-avF)/sdF;
If(theFoM>y, theFoM, 0);
If(theFoM<=y, If(theFoM>0, theFoM, 0),0);
The last two lines of both formulas allow them to
plotted in a chart in two colors. After
plotting the indicator, you will see two lines.
One at a time, select a line. Then use the color and style toolbars in the bottom left corner of your
MetaStock screen to change the line style to histogram. You can also change the color and weight
(thickness) of the line.
|
