Below is a relatively new type of Exponential Moving Average (EMA), based on price and modulated by price peaks/troughs.

Basically, the Pivotal EMA (PEMA) generally hugs the price closer as it approaches market turning points. This can be useful as a possible improvement to the standard EMA in crossover stops.

The first PEMA version uses the standard PREV functions to construct the EMA. The second plots much faster thanks to the use of variable-period DLLs.


[code:1:3339936fc1]
MetaStock -> Tools -> Indicator Builder -> New ->
Copy and paste complete formulae between "---8<---" lines.


=============
EMA - pivotal
=============
---8<------------------------------------

{ Pivotal Exponential Moving Average v1.0 }

{ PEMA based on trough/peak support/resistance.
Options:
[1] Composite EMA: (Upper+Lower)/2;
[2] Upper EMA band based on peaks;
Lower EMA band based on troughs;
[3] EMA shifts to Upper/Lower on crossovers }

{ ©Copyright 2004~2005 Jose Silva.
The grant of this license is for personal use
only - no resale or repackaging allowed.
All code remains the property of Jose Silva.
http://www.metastocktools.com }

{ User inputs }
pds:=Input("EMA periods",1,2520,21)/2;
plot:=Input("EMA: [1]Composite, [2]Upper+Lower, [3]Long/Short",1,3,1);
spread:=Input("Upper/Lower EMA bands shift %",
0,100,2)/200;
x:=Input("use: [1]Close, [2]High/Low",1,2,1);

{ Peak/Troughs }
xpk:=If(x=1,C,H);
pk:=xpk<Ref(xpk,-1) AND Ref(xpk,-1)>Ref(xpk,-2);
pkVal:=ValueWhen(1,pk,Ref(xpk,-1));
xtr:=If(x=1,C,L);
tr:=xtr>Ref(xtr,-1) AND Ref(xtr,-1)<Ref(xtr,-2);
trVal:=ValueWhen(1,tr,Ref(xtr,-1));

{ Peak-based EMA }
pkpds:=If(pds>Cum(pk),Cum(pk),pds);
pkpds:=If(pkpds<1,1,pkpds);
pkEma:=pkVal*2/(pkpds+1)+PREV*(1-2/(pkpds+1));
pkEma:=pkEma*(1+spread);

{ Trough-based EMA }
trpds:=If(pds>Cum(tr),Cum(tr),pds);
trpds:=If(trpds<1,1,trpds);
trEma:=trVal*2/(trpds+1)+PREV*(1-2/(trpds+1));
trEma:=trEma*(1-spread);

{ Composite EMA }
Ema:=(pkEma+trEma)/2;
LngShtEma:=If(C>=Ema,trEma,pkEma);

{ Plot on price chart }
If(plot=1,Ema,If(plot=2,trEma,LngShtEma));
If(plot=1,Ema,If(plot=2,pkEma,LngShtEma))

---8<------------------------------------

[/code:1:3339936fc1]


jose '-)

Jose,
Do I have to have something extra, or Metastock 9 is enough to handle this formula?

Jose, is there an easy way to load that extra program and is there anywhere a step by step procedure for the below average computer user?

If not I will probably have to use the first version as I fear of doing something wrong while loading extra program.

George, SportRider, there is an easier way to install and setup formulae/dll sets into MetaStock, such as automatic setups, but I reserve this process for clients.

Anyway, copy & paste of formulae can't do much harm to MetaStock.

jose '-)

Hi Naren

I have the DLL and if you write to me at rlarsen@quik.co.nz I'll send you a copy.

Roy
www.metastocktips.co.nz