| krishnaas |
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Gold User, Member, TeleChart
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| Registered User |
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| Unsure |
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| Friday, December 24, 2004 |
| Friday, June 2, 2006 5:02:47 AM |
12
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thanks a lot, Bruce..
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thanks, Bruce..
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Thanks Bruce for the prompt response. Sorry for the html distorting my post above.
Basically, DiNapoli seems to use the following calculations:
LANE (RAW) STOCHASTIC:
%K = 100 * [(C-Ln) / (Hn-Ln)]
where:
C is the latest close
Ln is the lowest low for the last n days
Hn is the highst high for the last n days
FAST STOCHASTICS:
%D = 3 period MAV (not simple, not exponential) of %K
This is what I'm looking to setup in Telechart:
SLOW (PREFERRED STOCHASTICS):
%K (of the slow stochastic) = %D (of the fast stochastic)
%D (of the slow stochastic) = 3 period MAV of %K (of the slow stochastic)
where MAVt = MAV(t-1) + ((Pt - MAV(t-1))/n,
where:
MAVt is the current modified Moving Average value
MAV(t-1) is the previous modified Moving Average value
Pt is the current price
n is the number of periods
So I'm not looking for exponential or simple smoothing. I need to smooth the %K using the 3 period MAV defined above to get %D.
The periods are:
1. 8 periods for consideration
2. 3 periods or smoothing the fast line
3. 3 periods for smoothing the slow line
4. "MAV" for the type of Moving Average to accomplish the desired smoothing.
Hope this clarifies. Thanks in advance for your help.
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I am reading the book "Trading Using DiNapoli Levels". In this book, the stochastics is calculated in the following way:
%K (of the slow stochastic) = %D (of the fast stochastic)
%D (of the slow stochastic) = 3 period MAV of %K (of the slow stochastic)
where MAV = MAV(t-1) + ((P - MAV(t-1))/n,
where:
MAV is the current modified Moving Average value
MAV(t-1) is the previous modified Moving Average value
P is the current price
n is the number of periods
Basically, instead of smoothing the %K and %D lines using simple or exponential moving averages, the book recommends smoothing using the modified moving averages (MAV) as defined above.
According to the TC2000 helpfile, the moving average used to smooth the %K and %D in "Stochastics" is the simple moving average. Can you let me know how I can go about "modify or customize" this to smooth using the MAV (as defined above)?
Thank you.
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Joe DiNapoli quotes in his book (p.61), "These (0.213, 0.108, .199) exponential inputs can be simulated by "period" inputs of 8.3896, 17.5185, 9.0503, if the software you are using is programmed to take "period" inputs and simulate the exponential Moving Average smoothing."
I'm unable to input any decimal numbers as MACD parameters. Can you help please? Thanks.
Passat, would appreciate if you can let me know how you created the Stochastics (to smooth using the modified moving average MAV). Thanks.
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