Registered User Joined: 10/7/2004 Posts: 1,178
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Let's observe SPWR as an example. On a Log Daily Chart, I've placed an Anchor drawing tool on the Gap Down on Fri 8/10/18--and a Horizontal Line at 9/14/19 High which could suggest a Long Entry.
When I change the chart from Log 6M to Arithmetic 1D, the same Anchor placed on the Log Daily Chart appears--but it appears at prices that don't match those on the Log Daily Chart.
Neither box is check on the Anchor drawing tool.
Can you please explain what happens to the Anchor when I switch from the Log Chart to an Arithmetic Chart?
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Worden Trainer
Joined: 10/7/2004 Posts: 65,138
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VWAP in TC2000 does not use individual trades unless you are in a the Tick time frame.
An Anchored VWAP drawing tool is going to essentially be using the following formula.
AVG((O + H + L + C) * V, x) / 4 / AVGVx
At the anchor bar (the far left bar in the Anchored VWAP), x is 1. At each new bar x increases by 1. Another way to think of it would be the following.
SUM((O + H + L + C) * V, x) / 4 / SUM(V, x)
With the anchor bar itself again having x = 1 and each new bar increasing x by 1.
But this second form lets us leave out the x at least mentally (this won't actually work as a PCF).
SUM((O + H + L + C) * V) / 4 / SUM(V)
Where SUM() is just the sum of the formula at each bar added together so far instead of being a different formula at each bar.
So when you switch time frames, you are going to be using different bars. In a daily time frame you would be using daily bars with daily open, high, low, close, and volume. In an intraday time frame you would be using intraday time frame where open, high, low, close, and volume would be determined on shorter intervals.
There are other issues related to time frames which can affect not only Anchored VWAP (and some of these things will cause unexpected results for Anchored VWAP), but things such as trendlines where the reasons might not be so obvious.
-Bruce Personal Criteria Formulas TC2000 Support Articles
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Registered User Joined: 10/7/2004 Posts: 1,178
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Thanks for the explanation!
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Worden Trainer
Joined: 10/7/2004 Posts: 65,138
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You're welcome.
-Bruce Personal Criteria Formulas TC2000 Support Articles
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