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Market Thermometer by dr. Elder [RESOLVED] - Market Thermometer by dr. Elder [RESOLVED]
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pirx  
#1 Posted : Tuesday, March 21, 2006 7:27:33 PM(UTC)
pirx

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Hello! In dr. Elder´s book, Come Into My Trading Room, he describes an interesting indicator, called Market Thermometer. This indicator helps to differentiate between sleepy, quiet periods and runaway e[censored]odes. The "original" formula is: Temperature = the greater of either (High[size=8:b7a4d40e1d]today[/size:b7a4d40e1d] - High[size=8:b7a4d40e1d]yesterday[/size:b7a4d40e1d]) or (Low[size=8:b7a4d40e1d]yesterday[/size:b7a4d40e1d] - Low[size=8:b7a4d40e1d]today[/size:b7a4d40e1d]) He also gave the "converted" formula for "Windows on WallStreet": if (hi<ref(hi,-1) and lo>ref(lo,-1), 0, if ((hi-ref(hi,-1)) > (ref(lo,-1)- lo), hi - ref(hi,-1), ref(lo,-1)-lo)) If it´s not too hard to convert this into MS formula, I would ask someone, to be so kind, and do it, because I don´t know how :eek: Thanks! :)
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Jose  
#2 Posted : Tuesday, March 21, 2006 8:35:20 PM(UTC)
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pirx wrote:
Temperature = the greater of either (High[size=8:7dbbc9f364]today[/size:7dbbc9f364] - High[size=8:7dbbc9f364]yesterday[/size:7dbbc9f364]) or (Low[size=8:7dbbc9f364]yesterday[/size:7dbbc9f364] - Low[size=8:7dbbc9f364]today[/size:7dbbc9f364])
Try this formula: [code:1:7dbbc9f364]Max(H-Ref(H,-1),Ref(L,-1)-L)[/code:1:7dbbc9f364] jose '-
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StorkBite  
#3 Posted : Tuesday, March 21, 2006 9:27:01 PM(UTC)
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There are several additional examples on the forum too.
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pirx  
#4 Posted : Tuesday, March 21, 2006 9:30:25 PM(UTC)
pirx

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Jose, thank you very much. I´ve added this indicator to the MS and it works just fine :) I´ve looked up for the Max() function (which I did not understand) in Formula Primer and it is used for "comparing two values and returns the highest." I guess this makes your formula an exact copy of Elder´s template. Thanks again! He also used a 22 day EMA on this indicator, which was quite flat. (despite of prices beeing volatile) But if I try to add a 22 EMA, the line gets jagged. As far as I know, there is only one way to add EMA to this indicator, or am I wrong?
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pirx  
#5 Posted : Tuesday, March 21, 2006 9:47:31 PM(UTC)
pirx

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Hey g_stockman, I was trying to find something about M.T. before I posted, but I could not find such a topic here. I´ll try again :)
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pirx  
#6 Posted : Tuesday, March 21, 2006 10:00:44 PM(UTC)
pirx

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Here is an example how EMA should look on this histogram. http://qtstalker.sourceforge.net/therm.htmlthere a way to "fix" this?
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StorkBite  
#7 Posted : Tuesday, March 21, 2006 10:16:34 PM(UTC)
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Hey Pirx- Check out this thread: http://forum.equis.com/viewtopic.php?p=15442#15442 You can also Google search the forum, but the internal search won't pull up the topic. None of these formulas is exactly the same, but they are free and the concept is the same.
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pirx  
#8 Posted : Thursday, March 23, 2006 8:36:16 PM(UTC)
pirx

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Thanks for the link, g_stockman. But I still did not manage to figure it out, how to plot EMA "correctly." Is it possible to plot EMA as on the link I pasted?
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StorkBite  
#9 Posted : Thursday, March 23, 2006 8:52:38 PM(UTC)
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Yes, you can plot a separate EMA of just about any indicator. Below is an example; however, if you want Elder's formula, you'll need to purchase it. This is only an example... [code:1:e36adfa97d]MarketTemp:= If(H<Ref(H,-1) AND L>Ref(L,-1),0, If(H-Ref(H,-1)>Ref(L,-1)-L, H-Ref(H,-1),Ref(L,-1)-L)); AvgMarketTemp:= mov(MarketTemp, 21, E); MarketTemp; AvgMarketTemp[/code:1:e36adfa97d]
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pirx  
#10 Posted : Thursday, March 23, 2006 9:13:08 PM(UTC)
pirx

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Thanks for your kindness! I appreciate it.
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