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 Gold Customer
Joined: 12/21/2004
Posts: 13
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I currently use TSV period 13 on a monthly chart and weekly chart. I am wanting to scan to find extremely "high" values or extremely "low" values of this variable. How do I write the variable TSV period 13 on a monthly chart; on a weekly chart?
Since TSV values differ from stock to stock, how do I "normalize" these values in order to scan for very high values or very low values of monthly TSV or weekly TSV?
Same questions for the variable Price Rate of Change....thanks....
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Worden Trainer
Joined: 10/1/2004
Posts: 4,308
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I'm checking into this, warrenshepherd. Someone will post a reply here as soon as we can.
- Doug
Teaching Online!
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Worden Trainer
Joined: 10/1/2004
Posts: 4,308
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warrenshepherd:
When you say you want extremely high values for TSV, do you mean stocks that have very high or low TSV compared to previous TSV values for that stock, or do you mean high values compared to other stocks (ie. which stocks currently have much higher TSV values than other stocks?).
If you'll clarify, that will help us arrive at the appropriate answer for you.
- Doug
Teaching Online!
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Registered User
Joined: 10/7/2004
Posts: 799
Location: Duluth, GA
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Hi Warrenshepherd:
Try this out re your question:
"Since TSV values differ from stock to stock, how do I "normalize" these values in order to scan for very high values or very low values of monthly TSV or weekly TSV?"
The formula used for the Stochastic can be applied to any data series, including TSV ... it "converts" an unbounded value (like TSV) to a bounded oscillator (like Stochastics).
You need to decide two things, first:
1) what degree of smoothing to use on the TSV ... let's choose 10 periods as an example
2) what lookback period should be used to normalize TSV against ... let's choose 40 periods as an example
Question number two has to do with your perspective on stock action ... and your typical hold time. I've written a LOT about those topics elsewhere ... do a search on "typical hold time". But if it's in the range of about 5-15 days, then I think something like a 20-60 day lookback window might be appropriate.
The formula itself is very simple:
(TSV10-Min(TSV10,40))/(Max(TSV10,40)-Min(TSV10,40))*100
When the TSV10 gets near the max value that it has had in the last 40 days, this formula will return close to 100% as a result. When it is near the min value, the formula will return close to 0%.
There are a LOT of ways you can use this as a signal ... just take a look at how many methods people have developed with Stochastics ... most all of those are worth looking at with this "normalized TSV" function.
Now, as to how to compare a watchlist of stocks (on a daily bar basis) - either plot the formula as a Custom Indicator and use SortBy to find stocks that currently are near high or low or 50% or whatever, OR use the formula as a PCF in a Watchlist tab column, or attach the PCF to an Easyscan.
If you want to use weekly or monthly or hourly or whatever bars that AREN'T daily, then you MUST apply the formula as a custom indicator and use SortBY ... the formula will automatically be evaluated with respect to whatever days/bar setting you have on your chart at the time.
I hope this helps!
Jim Dean
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Worden Trainer
Joined: 10/7/2004
Posts: 65,138
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warrenshepherd,
An Indicator Sort using the Visual Value of TSV should work in any Zoom and Timeframe:
Sort by Visual Value to find new highs and lows in price and indicators
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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Registered User
Joined: 10/7/2004
Posts: 799
Location: Duluth, GA
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Yep ... that is an easier way to do the same thing ... pick your Zoom and barlength appropriately. Good call, Bruce!
Jim Dean
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