| Welcome Guest, please sign in to participate in a discussion. | Search | Active Topics | |
Registered User
Joined: 2/1/2008
Posts: 13
|
How are the channels measured?
1 deviation is what %?
The term deviation by itself is a bit vague
Thanks,
Ron Daino
(email and phone removed by moderator)
|
|
Worden Trainer
Joined: 10/7/2004
Posts: 65,138
|
I don't know how Envelope Channels are calculated in TeleChart and have been unable to reproduce them using formulas. The Envelope Channel Width calculations used in TeleChart appear to be very similar to the Linear Regression Channel Width calculations:
Linear regression channel calculations
That said, I have not been able reproduce the Envelope Channel Width calculations exactly and cannot provide any additional details. You can use Channel Sorts on Envelope Channels however. You may wish to review the following:
Sort using envelopes, regression channels and Bollinger bands
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
|
|
Registered User
Joined: 2/1/2008
Posts: 13
|
Bruce,
Just want to know what 10, 20 etc widths are in terms of %.
Ron Daino
|
|
Worden Trainer
Joined: 10/7/2004
Posts: 65,138
|
A Width of 10 = 1 x the total Width calculation, so 1 would be 10% of the total Width calculation. But as stated previously, the Width calculations for an Envelope Channel are unknown.
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
|
|
Registered User
Joined: 2/1/2008
Posts: 13
|
What width setting would I use on the S&P500 if I wanted a 2.75% band top & bottom?
|
|
Worden Trainer
Joined: 10/7/2004
Posts: 65,138
|
You wouldn't. The Envelope Channels in TeleChart are not a percent of Price or the Moving Average of Price. As stated previously, the calculation is unknown.
If you want to Plot channels that are 2.75% above and below Price or its Moving Average, you could create a Custom Price Channel Indicator.
Select Chart Template | Add Indicator | Price Channel.
-Visible: Checked
-Plot Formula Line: Your choice
-Smoothing Average: 1 if you don't want a Moving Average, the MA Period otherwise
-Average Type: Up to you (doesn't matter if the Smoothing Average is 1)
-Width Multiplier: 10
-Indicator Line Formula: C
-Channel Width Formula: .0275 * C
You may wish to review the following:
PCF Formula Descriptions
Handy PCF example formulas to help you learn the syntax of PCFs!
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
|
|
Registered User
Joined: 12/17/2004
Posts: 143
|
QUOTE (Bruce_L) I don't know how Envelope Channels are calculated in TeleChart and have been unable to reproduce them using formulas. The Envelope Channel Width calculations used in TeleChart appear to be very similar to the Linear Regression Channel Width calculations:
Linear regression channel calculations
That said, I have not been able reproduce the Envelope Channel Width calculations exactly and cannot provide any additional details. You can use Channel Sorts on Envelope Channels however. You may wish to review the following:
Sort using envelopes, regression channels and Bollinger bands
B-
I want to APPROXIMATE the formula for envelope channels. For my purposes, LR Width calculations would be similar enough. But, when I tried the LR settings you provided in the link (60,10), and an envelope with the same settings, they didn't seem to agree. Would you help me find my error?
Here's an example: On SP-500, on 7/13/09, LR upper = about 935 and LR lower = about 913, but the lower env chnl = about 801 and the upper env chnl = about 1002.
Thanks!
J
|
|
Worden Trainer
Joined: 10/7/2004
Posts: 65,138
|
jfh123,
I really can't help you other than to say that while the calculations of the envelope channels appear to be of a similar form to those of Linear Regression Channels, they appear to use far more data than their Period settings would suggest.
I have spent many hours on this over the years and can still only speculate as to the exact details. That said, I suspect that Period is only used in the calculation of the Moving Average centerline, that the width is independent of the period and that the "period" used in the Width calculations is based on whichever Indicator currently Plotted on the Chart requires the most data.
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
|
|
Registered User
Joined: 12/17/2004
Posts: 143
|
Thanks, anyway.
|
|
Worden Trainer
Joined: 10/7/2004
Posts: 65,138
|
jfh123,
You're welcome.
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
|
|
|
Guest-1 |