Registered User Joined: 12/23/2008 Posts: 4

Could someone please give me the pcf for a 20 period ATR so I can put it on my charts? thank so much in advance for you help. Brian Farrell

Worden Trainer
Joined: 10/7/2004 Posts: 65,138

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 traditional Wilder's Smoothed 20Period ATR:
Select Chart Template  Add Indicator  Indicator.
 Visible: Checked
 Center Zero Line: Checked
 Plot using price scale: Unchecked
 Smoothing Average: 39 (twice the ATRPeriod 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 14Period ATR, just change the Smoothing Average to 27 (which equals (14 * 2) 1).
A 20Period Simple Moving Average of True Range could be created by changing the Smoothing Average to 20 and the Average Type to Simple.
A 20Period Exponential Moving Averoge of True Range could be created by changing the Smoothing Average to 20 and the Average Type to Exponential.
The 20Day Average True Range topic contains Personal Criteria Formulas for all three interpretations of a 20Period Average True Range. You may wish to review the following:
Plotting Custom Indicators with Examples
PCF Formula Descriptions
Bruce Personal Criteria Formulas TC2000 Support Articles

Registered User Joined: 10/7/2004 Posts: 76

Why is the formula divided by 2

Worden Trainer
Joined: 10/7/2004 Posts: 65,138

Mark,
Why? Because that's the way the math works out.
We could approach this quite a few different ways, but let's start by using the techniques given in Min Max PCFs to get a formula for the higher of the current High and the previous Close:
(H + C1 + ABS(H  C1)) / 2
It adds the High and the previous Close together and adds the absolute difference between the two. The reason you are dividing by two is because you added them together in the first place.
And then use the same techniques to get a formula for the lower of the current Low and the previous Close:
(L + C1  ABS(L  C1)) / 2
It adds the Low and the previous Close together and subtracts the absolute difference between the two. The reason you are dividing by two is because you added them together in the first place.
Now if we subtract the second formula from the first we get:
(H + C1 + ABS(H  C1)) / 2  (L + C1  ABS(L  C1)) / 2
The C1s cancel out. Rearranging the rest gets us the original formula (with the divide by two being there because they were there from the original calculations).
(H  L + ABS(H  C1) + ABS(L  C1)) / 2
Bruce Personal Criteria Formulas TC2000 Support Articles

Registered User Joined: 5/16/2010 Posts: 33

Hi Bruce,
Would the following give me a sort formula for ATR as a percentage of the stock's price in telechart? Thanks
((H  L + ABS(H  C1) + ABS(L  C1)) / 2) / avgc14

Registered User Joined: 1/28/2005 Posts: 6,049

That would give you one ATR (known as TR) vs. a 14 bar simple average of the close.
Thanks
diceman

Registered User Joined: 2/9/2010 Posts: 50

Can a moving VWAP 10 day be created for telecharts?

Registered User Joined: 2/9/2010 Posts: 50

I am a platinum customer, don't know why that did not show up! shannon

Administration
Joined: 9/30/2004 Posts: 9,187

QUOTE (shannon.3330) Can a moving VWAP 10 day be created for telecharts?
Create a custom indicator using the following formula and be sure to check "Plot using price scale".
((C*V) + (C1*V1) + (C2*V2) + (C3*V3) + (C4*V4) + (C5*V5) + (C6*V6) + (C7*V7) + (C8*V8) + (C9*V9)) / (V + V1 + V2 + V3 + V4 + V5 + V6 + V7 + V8 + V9)
