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

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.

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 ?

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.

Thank you for clarification!

How is the first formula below different for calculating a 5 day % change?  

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