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Registered User Joined: 11/19/2015 Posts: 459
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Hello.
Which of these is correct for "percent above/below EMA8"? I realized I had been using both in different spots.
(C - XAVGC8 ) / (XAVGC8) / 2 * 100
-or-
(C - XAVGC8 ) / ((C + XAVGC8) / 2)*100
Whichever is *not* expressing "pct above ema", what is it evaluating?
Thank you.
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Worden Trainer
Joined: 10/7/2004 Posts: 65,138
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I really don't know why anybody would have written those formulas.
The first is half of the percentage that price is above or below its own 8 period exponential moving averages.
The second is the percentage that price is above or below the mid-point between price and its own 8 period exponential moving average.
The percentage that price is above or below its own 8 period exponential moving average can be written as follows.
100 * (C / XAVGC8 - 1)
-Bruce Personal Criteria Formulas TC2000 Support Articles
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Registered User Joined: 11/19/2015 Posts: 459
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"I really don't know why anybody would have written those formulas."
Sadly, I am probably responsible for them. I'm not sure what I had in mind, either. I'm not disciplined enough about good helper descriptions.
Thanks for the clarification and help, Bruce. Much appreciated. Hope you had a good weekend.
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Worden Trainer
Joined: 10/7/2004 Posts: 65,138
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You're welcome. I have been thinking about the formulas since answering the question.
I think I am starting to understand what the second of the two formulas is getting at. I still haven't figured out the reason for halfing the percentage in the first formula though.
-Bruce Personal Criteria Formulas TC2000 Support Articles
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Registered User Joined: 11/19/2015 Posts: 459
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Based on your description of 2, it rings a bell. I have used that idea for marking volatility ranges, but using a variety of bands rather than MAs. I think you are correct here. I often midpoints as markers. I use the 8EMA as somewhat arbitary starting point for a variety of evaluations. In this case, I think I mixed the two.
So, your clarification I think has clarified. It's likely that I simply wrote a variation of it for 1.
Thanks again, Bruce.
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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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