Rank: Member
Groups: Registered, Registered Users, Subscribers
Joined: 12/8/2005(UTC)
Posts: 14
Location: Edmonton, Alberta
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I just purchased Bollinger Bands Tool Kit and plotted his BBTK - AD indicator. I opened up another window and plotted MetaStock AD indicator. When I ran a correlation on both indicators it shows that their are some discrepancies. According to the MetaStock manual, MetaStock calculates the AD indicator as follows:
cum((((C-L) - (H-C)) / (H-L)) * V)
The Bollinger Tool Kit calculates it as follows:
highlow:= If(HIGH > LOW, (HIGH - LOW), -1); {flag zero ranges}
AccDist := If(highlow <> -1, (CLOSE - OPEN) / highlow * VOLUME, 0); {Single period AD}
Cum(AccDist); {AD}
Both approaches are different, but should produce the same results. But they do not. Can someone please explain what could be causing this difference.
Thanks, Steven #-o
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Rank: Advanced Member
Groups: Registered, Registered Users
Joined: 11/7/2005(UTC)
Posts: 602
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For starters..the second one uses "open" and the top one does not.
even if you loose the "flag zero values" parm they do not look the same?
Are you sure they are "the same"?
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Rank: Member
Groups: Registered, Registered Users, Subscribers
Joined: 12/8/2005(UTC)
Posts: 14
Location: Edmonton, Alberta
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Thanks John, your right. I feel really stupid right now. I don't know why I did not see that.
Obliviously I was looking at too many formulas over the weekend. They are starting to look all alike.
Thanks, Steven :eek:
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Rank: Advanced Member
Groups: Registered, Registered Users
Joined: 11/7/2005(UTC)
Posts: 602
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I wouldn't feel too stupid if I were you. Once you start looking you are going to find quite a few indicators
that are called the same but are calculated differently. And both are correct, only when they "black box"
it (won't let me get to the code), I get frustrated.
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