| HokieTrader |
|
Gold User, Member, TeleChart
|
| Registered User |
|
|
|
|
| Unsure |
|
| Saturday, September 23, 2006 |
| Wednesday, November 22, 2006 9:17:19 PM |
5
[0.00% of all post / 0.00 posts per day] |
|
|
Bruce, got it, thanks for clarifying this!
|
Bruce, thanks for the quick response, but I'm still confused. Are the following two equivalent ways to plot average true range (forget for a minute that the first example is exponential, let's assume it's simple and same period as second example)? Do you need to use smoothing average of 27 for the second example, or is that built into the formula? Thanks again. Ed
QUOTE (Bruce_L) Average True Range is not one of TeleChart's built in indicators, but it can be created as a Custom Indicator. Please try the following for a 20-Period ATR:
Select Chart Template | Add Indicator | Indicator.
- Visible: Checked
- Center Zero Line: Checked
- Plot using price scale: Unchecked
- Smoothing Average: 39 (twice the ATR-Period minus one)
- Average Type: Exponential
- Indicator Formula: (H - L + ABS(H - C1) + ABS(L - C1)) / 2
You can adjust the Average True Range Period by changing the Smoothing Average in the Custom Indicator. For example, to plot a 14-Period ATR, just change the Smoothing Average to 27 (which equals (14 * 2) -1).
QUOTE (Bruce_L) True Range is the largest of the High minus the Low, the High minus the previous Close or the previous Close minus the Low. A very useful way of calculating this value for the purpose of creating Personal Criteria Formulas is:
(H -L + ABS(H - C1) + ABS(C1 - L)) / 2
Average True Range is the Moving Average of this value. I'm going to use a Period of 14 because that is what was mentioned in the Thursday, July 20,2006 Worden Report. It could be calculated using a Simple Moving Average:
14-Period Simple Moving Average of True Range:
(AVGH14 - AVGL14) / 2 + (ABS(H - C1) + ABS(C1 - L) + ABS(H1 - C2) + ABS(C2 - L1) + ABS(H2 - C3) + ABS(C3 - L2) + ABS(H3 - C4) + ABS(C4 - L3) + ABS(H4 - C5) + ABS(C5 - L4) + ABS(H5 - C6) + ABS(C6 - L5) + ABS(H6 - C7) + ABS(C7 - L6) + ABS(H7 - C8) + ABS(C8 - L7) + ABS(H8 - C9) + ABS(C9 - L8) + ABS(H9 - C10) + ABS(C10 - L9) + ABS(H10 - C11) + ABS(C11 - L10) + ABS(H11 - C12) + ABS(C12 - L11) + ABS(H12 - C13) + ABS(C13 - L12) + ABS(H13 - C14) + ABS(C14 - L13)) / 28
|
QUOTE (Bruce_L) Average True Range is the Moving Average of this value. I'm going to use a Period of 14 because that is what was mentioned in the Thursday, July 20,2006 Worden Report. It could be calculated using a Simple Moving Average:
14-Period Simple Moving Average of True Range:
(AVGH14 - AVGL14) / 2 + (ABS(H - C1) + ABS(C1 - L) + ABS(H1 - C2) + ABS(C2 - L1) + ABS(H2 - C3) + ABS(C3 - L2) + ABS(H3 - C4) + ABS(C4 - L3) + ABS(H4 - C5) + ABS(C5 - L4) + ABS(H5 - C6) + ABS(C6 - L5) + ABS(H6 - C7) + ABS(C7 - L6) + ABS(H7 - C8) + ABS(C8 - L7) + ABS(H8 - C9) + ABS(C9 - L8) + ABS(H9 - C10) + ABS(C10 - L9) + ABS(H10 - C11) + ABS(C11 - L10) + ABS(H11 - C12) + ABS(C12 - L11) + ABS(H12 - C13) + ABS(C13 - L12) + ABS(H13 - C14) + ABS(C14 - L13)) / 28
Bruce-
What's the difference between the simple moving average of ATR formula you list above and using TeleChart to do the moving average the way you describe in Average True Range (ATR)? Thanks.
|
|
Is there any way to test the width of price channel? I'm trying to set up a scan that includes width of price channel as one of the crtieria. Thanks.
|
|