Registered User Joined: 7/14/2007 Posts: 9
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Hi, Two parts to questions:
#1) Please post the PCF formula for a 34 day Moving Linear Regression Curve.
#2) "How To" -- Please also explain how do you calculate the multipliers and divisor for a MLRC formula? (i.e., what are the generic "rules" to calculate a MLRC for ANY number of days).
Thanks in advance for help!
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Worden Trainer
Joined: 10/7/2004 Posts: 65,138
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A Personal Criteria Formula for a 34-period moving linear regression can e written as follows.
AVGC34 + 16.5 * (16.5 * C + 15.5 * C1 + 14.5 * C2 + 13.5 * C3 + 12.5 * C4 + 11.5 * C5 + 10.5 * C6 + 9.5 * C7 + 8.5 * C8 + 7.5 * C9 + 6.5 * C10 + 5.5 * C11 + 4.5 * C12 + 3.5 * C13 + 2.5 * C14 + 1.5 * C15 + 0.5 * C16 - 0.5 * C17 - 1.5 * C18 - 2.5 * C19 - 3.5 * C20 - 4.5 * C21 - 5.5 * C22 - 6.5 * C23 - 7.5 * C24 - 8.5 * C25 - 9.5 * C26 - 10.5 * C27 - 11.5 * C28 - 12.5 * C29 - 13.5 * C30 - 14.5 * C31 - 15.5 * C32 - 16.5 * C33) / 3272.5
The 34 in AVGC34 is just the period of the moving linear regression.
The 16.5 used as both the number before the parentheses and as the first factor for C is just (period - 1) / 2.
You then subtract one from the factor for each past value included in the calculations.
The 3272.5 at the end of the formula is period*(period^2-1)/12.
The Using Linear Regression vs Classical Peaks/Valleys for Divergence Analysis topic explores the construction of linear regression based formulas in greater detail.
-Bruce Personal Criteria Formulas TC2000 Support Articles
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