Hi, I've tried to create a indicator for the VMA but without success, using the below formula:
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VMA = (0.78*(volatility index) * close) + (1-0.078 * volatility index)*yesterday’s VMA
For the volatility index I've choosed the CMO of length 9, function below:
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Input: LENGTH(Numeric);
CMO =100*((C-C[LENGTH])/ (SUMMATION(ABSVALUE((C-C[1])),LENGTH)));
Then the complete formula for my VMA is:
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VMA = (0.78*CMO(9) * close) + (1-0.078 * CMO(9))*VMA[1]
This looks wrong? I put this formula and Multicharts64 return big numbers, far from a moving average. I put this formula in excel with the values of CMO(9) and don't return big numbers. Can anyone help me please?
And sorry by the bad english!