Trend line breakout

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ragdoll
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Trend line breakout

Postby ragdoll » 26 Aug 2020

Hi,

I found an interesting strategy in https://www.multicharts.com/support/bas ... -breakout/

May I ask what is the following calculation for please? Thanks.

VALUE1=@MOMENTUM(C,3);

VALUE2=@MOMENTUM(C,3)[1];

VALUE3=0.3*(VALUE1-VALUE2)+(1-0.3)*VALUE3;

VALUE4=WAVERAGE((VALUE3),6);

VALUE5=@RSI(C,9)+VALUE4;

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JoshM
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Re: Trend line breakout

Postby JoshM » 26 Aug 2020

The way I understand that code is:

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VALUE1=@MOMENTUM(C,3); VALUE2=@MOMENTUM(C,3)[1];
This calculates the 3-bar momentum of closing prices and puts that value in the `value1` variable. Then the code calculates the 3-bar momentum of the close for the previous bar. That value is put into the `value2` variable.

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VALUE3=0.3*(VALUE1-VALUE2)+(1-0.3)*VALUE3;
This takes 30% of the difference in the current 3-bar momentum and the previous 3-bar momentum. It then adds 70% of the current value of the `value3` variable. Why it does this I don't know.

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VALUE4=WAVERAGE((VALUE3),6);
This calculates the 6-bar weighted average of the `value3` variable.

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VALUE5=@RSI(C,9)+VALUE4;
This calculates the 9-bar relative strength index (RSI) based on closing prices. It then adds the 6-bar weighted average.

Hope this helps a little.


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