Discussions
»
Product and Service Development
»
Formula Assistance
»
Formula Explanation - Elder Ray Bulls & Bears [RESOLVED]
Rank: Member
Groups: Registered, Registered Users Joined: 6/23/2007(UTC) Posts: 17 Location: Australia
|
Could someone please explain the following formula in lamen terms.
H- Mov(C,13,E)
My understanding is today's high minus the calculation of the moving average derived from today's close, averaged over the last 13 days? Is it days or weeks - how do you know when creating these indicators if you should be viewing your chart daily or weekly.
There is also another formula which goes with this too:
L- Mov(C,13,E)
My understanding is as above except the calculation would use the Low for the day, not the high.
Is the '-' after the H a minus or a dash and does it matter if the space is there or not as in another exercise the space is not present?
Mouse
|
|
|
|
Rank: Advanced Member
Groups: Registered, Registered Users Joined: 4/18/2007(UTC) Posts: 99 Location: sydney australia
|
quite an interesting lot of questions, last one first: of course it's a minus, you said so yourself. Spaces: I guess the less spaces the better, except when it's 'and' or 'or' things like that.
now for the daily vs weekly: an example by way of illustration: if you want to create a formula using say an average of 50 weeks closing price, you'd have to make that: mov(c,250,s) on the daily, but if you want to view it on a weekly chart, you'd need to use 50. I don't think you can have it both ways.
|
|
|
|
Rank: Advanced Member
Groups: Registered, Registered Users Joined: 4/18/2007(UTC) Posts: 99 Location: sydney australia
|
I just noticed, within the brackets where your formula has got "e", in my example I was using "s". e stands for exponential, s for simple. it's in the book.
your understanding of the formula is correct, but if it's part of an exploration, one would like to see the rest of it. then we'll be able to tell you if it's any good.
|
|
|
|
Rank: Member
Groups: Registered, Registered Users Joined: 6/23/2007(UTC) Posts: 17 Location: Australia
|
Hi Amory
Thanks for your explanation. I have worked back over the exercise and have a better understanding of what the formulas now mean. No it wasn't part of an exploration; it was an exercise showing how to create an indicator viewed as a histogram. It compares the power of bulls and bears to average consensus of value.
I had no trouble following, creating the indicator and completing the exercise - it was just getting my brain to fully understand it so thought the best way to reinforce was to go over it again. This was the first exercise in the home study course I'm currently doing so I found it a little full on. I'm determined not to give up....I'm hoping things will start to fall into place soooon. Thanks again.
Mouse
|
|
|
|
Users browsing this topic |
Guest (Hidden)
|
Discussions
»
Product and Service Development
»
Formula Assistance
»
Formula Explanation - Elder Ray Bulls & Bears [RESOLVED]
Forum Jump
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.