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Registered User
Joined: 10/7/2004
Posts: 794
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I found this formula in my data base and trying to figure out what it is calculating?
Thank you!
( (2 * C * 100 / C3) + (2 * C * 100 / C5) + ( C * 100 / C8) ) / 5
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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It is calculating a compound price percent change where 40% comes from a 3-period, 40% comes from a 5 period and 20% comes from an 8-period.
-Bruce
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Registered User
Joined: 10/7/2004
Posts: 794
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Thank you Bruce... but how do you determine 40% and is it a 40% move from the close to the 3 pd and the close to the 5 pd ?
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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100 * (C / C3 - 1) is a 3-period price percent change. This portion is multiplied by 2.
100 * (C / C5 - 1) is a 5-period price percent change. This portion is multiplied by 2.
100 * (C / C8 - 1) is an 8-period price percent change. This portion is multiplied by 1.
The entire thing is divided by 5.
2 / 5 = 40% and 1 / 5 / 20%
The formula isn't actually subtracting 1 at the various points, so it is actually a momentum formula instead of a price percent change formula. The only difference is that momentum is 100 greater than price percent change and price percent change is 100 less than momentum.
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Registered User
Joined: 10/7/2004
Posts: 794
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Thank you for clarification!
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 Gold Customer
Joined: 12/30/2004
Posts: 4
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How is the first formula below different for calculating a 5 day % change?
((C-C5)/C5*100)
Then
100 * (C / C5 - 1)
On a weekly chart that has a Bar % change. Neither of these formulas match it.
Which is correct for a 5-day % change?
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Registered User
Joined: 1/28/2005
Posts: 6,049
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Both are correct and give the same result.
Remember that it is 5 bars not days.
To compare it to a weekly chart:
1) You would compare it to a 1 bar change on the weekly. (5 days in a week)
2) There should be no holidays in the week.
This week wont work because of Thanksgiving Holiday. (4 day week)
Hope that helps.
Thanks
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