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Direct MessagesDate/Time: Sun, 19 May 2024 23:32:47 +0000
Post From: Larry Williams GSV indicator
| [2018-12-05 19:30:27] |
| SC Support Tom - Posts: 450 |
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In the "Buy Swing", for example, when the close is an up day, you give the result a value of O. Doesn't this affect the value of the moving average you calculate in step 2? By adding zeroes to your numerator and dividing by n days in the denominator your resulting average would be lower than if you had simply ignored any days that close up and only added the values of the down days and divided by the n of down days. Yes, those zero values would lower the value of the Simple Moving Average. Williams' description of the indicator does not give clear instructions on what to do with up days that occur in the 4-day window for the Buy Swing calculation (or vice versa for down days in the Sell Swing calculation). This was my guess. The goal for "Buy Swing" is to only sum the (high-open) for down days and divide by the number of down days to get the average point value of an attempting "up" a down day. All up days should be ignored -- affecting neither the numerator or the denominator. (Vice versa for Sell Swing) It sounds like I could achieve that by replacing the Simple Moving Average with Simple Moving Average - Skip Zeros, which is described here: Moving Average - Simple Skip Zeros For example, if in a 4-day window there are 2 down days and 2 up days, then the sum of the 2 down days would be divided by 2 for the average Buy Swing, and the sum of the 2 up days would be divided by 2 for the average Sell Swing over the same period. Does that sound more like it? |