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Registered User
Joined: 3/14/2005
Posts: 311
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Is this how you write a 20 day Volume Adjusted MA?
(C*(V/(AVGV20*.67))) +(C1*(V1/(AVGV20*.67))) +(C2*(V2/(AVGV20*.67))) +(C3*(V3/(AVGV20*.67))) +(C4*(V4/(AVGV20*.67))) +(C5*(V5/(AVGV20*.67))) +(C6*(V6/(AVGV20*.67))) +(C7*(V7/(AVGV20*.67))) +(C8*(V8/(AVGV20*.67))) +(C9*(V9/(AVGV20*.67))) +(C10*(V10/(AVGV20*.67))) +(C11*(V11/(AVGV20*.67))) +(C12*(V12/(AVGV20*.67))) +(C13*(V13/(AVGV20*.67))) +(C14*(V14/(AVGV20*.67))) +(C15*(V15/(AVGV20*.67))) +(C16*(V16/(AVGV20*.67)))+(C17*(V17/(AVGV20*.67)))+(C18*(V18/(AVGV20*.67)))+(C19*(V19/(AVGV20*.67)))
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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It depends... what is a "Volume Adjusted MA"?
- Craig
Here to Help!
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Registered User
Joined: 3/14/2005
Posts: 311
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Craig,
It's explained in the Technical Analysis from A to Z. It's meant to apply more weight to the days with the most volume.
This is how they explin it.
1)Calculate the average volume for the time period you are studing.
2)Multiply the average volume by .67 to get volume increment
3)divide each period actual volume by volume increment to get each periods volume ratio
4)Multiply each period price by the periods volume ratio.
and its a cumulative indicator
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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Your formula appears to be correct based on your description, but can be simplified to:
(C * V + C1 * V1 + C2 * V2 + C3 * V3 + C4 * V4 + C5 * V5 + C6 * V6 + C7 * V7 + C8 * V8 + C9 * V9 + C10 * V10 + C11 * V11 + C12 * V12 + C13 * V13 + C14 * V14 + C15 * V15 + C16 * V16 + C17 * V17 + C18 * V18 + C19 * V19) / AVGV20 / .67
The result is not Cumulative in and of itself, but could be used in a Custom Cumulative Indicator. Do you know why this would be used instead of a Volume Weighted Moving Average?
(C * V + C1 * V1 + C2 * V2 + C3 * V3 + C4 * V4 + C5 * V5 + C6 * V6 + C7 * V7 + C8 * V8 + C9 * V9 + C10 * V10 + C11 * V11 + C12 * V12 + C13 * V13 + C14 * V14 + C15 * V15 + C16 * V16 + C17 * V17 + C18 * V18 + C19 * V19) / AVGV20 / 20
You may wish to review the following:
How to create a Personal Criteria Forumula (PCF)
Handy PCF example formulas to help you learn the syntax of PCFs!
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Registered User
Joined: 3/14/2005
Posts: 311
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Can you explain why the first one is getting divided bi .67 and the seconed one by 20?
Do I need to plot these as a Custom cumulativr indicator? if yes what do I need to put as a up and down condition?
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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QUOTE (rabin) Can you explain why the first one is getting divided bi .67 and the seconed one by 20?
The /20 in the Volume Weighted Moving Average is there because that's what the prices where multiplied by when they were added together. If price doesn't change, the output will be the same as price no matter what the volume. If volume doesn't change, it will produce the same results as a Simple Moving Average.
The /.67 is included in the Volume Adjusted Moving Average because that's what was included in your description. I don't know why it is used, which is why I asked about the purpose of a Volume Adjusted Moving Average versus a Volume Weighted Moving Average.
QUOTE (rabin) Do I need to plot these as a Custom cumulativr indicator? if yes what do I need to put as a up and down condition?
The Volume Weighted Moving Average should be plotted as a normal Custom Indicator with Plot using price scale checked.
I have no idea about about the Volume Adjusted Moving Average. It does not make sense to me that a Moving Average would not be adjusted for unity. It does not makes sense to me that a Moving Average would be cumulative. Your description however indicates it is a Cumulative Indicator without giving conditions for when it might rise or fall. If it is a Cumulative Indicator, it would need to be created as a Custom Cumulative Indicator. We could create a Custom Cumulative Indicator using a condition that is always True for the up condition such as:
C < C + 1
And a condition that is always False for the down condition such as:
C > C + 1
But the result would be an indicator that always goes up. That said, I have no idea what else to use as conditions based on your description.
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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