
Discuss Some TA Indicator Formulae at the Technical Analysis within the Traderji.com  Online community for Indian investors & traders!; Hope this helps 1) Simple Moving Average: The simple moving average sums the prices (you ... 

Technical Analysis Discussion of all the principles involved in technical analysis. 

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Some TA Indicator Formulae
Hope this helps
1) Simple Moving Average: The simple moving average sums the prices (you can choose from the closing price, the VWAP timeweighted price or the high/low/close average price) for a specific number of data points and divides by that number. The calculation for a 3bar simple moving average is: (price_1) + (price_2) + (price_3) divided by 3 2) Weighted Moving Average: The weighted moving average gives each data point a weight proportionate to its number in the sequence and divides by the sum of its weights. The calculation for a 3bar weighted moving average is: (1 x price_1) + (2 x price_2) + (3 x price_3) divided by 6, where 6 is the sum of the weights (1 + 2 + 3). 3) Exponential Moving Average: The exponential moving average gives more weight to the latest prices and includes all of the price data in the life of the instrument. It is defined by taking: (previous period's exponential moving average)/(N+1) and adding (current price)*2/(N+1). For the first period we take the simple average as above. 4) Envelope: SMA/WMA/EMA Envelopes plot a band composed of two moving averages, one which is shifting upwards, the other shifting downwards, to help define a stock's upper and lower boundaries. The bands of an envelope are calculated as follows: Upper Band = MA(CLOSE, N)*[1+K/100] Lower Band = MA(CLOSE, N)*[1K/100] Where: MA = Simple (or Weighted or Exponential) Moving Average; N = averaging period; K/100 = the value of shifting from the average (measured in basis points). 5) Bollinger Bands: Bollinger Bands measure volatility by plotting a series of three bands. The middle band represents the moving average (SMA or WMA or EMA). The upper band is a set number of standard deviations higher than the middle band (generally 2), and the lower band is a set number of standard deviations (generally 2) lower than the middle band. You set the distance of standard deviation when you create the study. Bollinger Bands are calculated like this: ML = Avg. (N) TL = ML + (D*StdDev) BL = ML  (D*StdDev) Where: ML = middle line Avg(N) = SMA or WMA or EMA TL = top line BL = bottom line N = is the number of periods used in calculation; StdDev = the Standard Deviation. StdDev = SQRT(SUM[(CLOSE — SMA(CLOSE, N))^2, N]/N) 6) Parabolic SAR: For use in trending markets, parabolic SAR uses a trailing stop and reverse method to help determine good exit and entry points. The Parabolic SAR calculation is: SARt+1 = SARt+ AF x (EPtrade x SARt) Where: SARt+1 = next period's SAR SARt = current SAR AF = acceleration factor, begins at .02 and increases by .02 to a maximum of 20. NOTE: You can reset the initial, increments and maximum acceleration factor when you create the study. EPtrade = the extreme price (HIGH for long positions and LOW for short positions). 7) Relative Strength Indicator: The RSI indicator is for overbought/oversold conditions. It goes up when the market is strong, and down when the market is weak, and oscillates between 0 100. The RSI calculation is: RSI = 100(100/1+RS) Where: RS = Average of X bars Up Closes/Average X bars Down Closes (X=number of bars set by user) 8) Moving Average Convergence/Divergence (MACD): This is a trendfollowing dynamic indicator that shows the correlation between two moving averages, generally a 26period and 12period SMA or WMA or EMA. You can modify the period length when you create the study. To help illustrate opportunity, a 9period EMA "signal line" is plotted on top of the MACD. The MACD and signal line are plotted using the following calculations: MACD = MA(CLOSE, 12)MA(CLOSE, 26) SIGNAL = EMA(MACD, 9) MACD Histogram/OSMA = MACD  SIGNAL Where: MA = Simple or Weighted or Exponential Moving Average; SIGNAL = the signal line of the indicator. 9) ADX/DMI: The ADX/DMI is represented by three lines +DM, DM and ADX. The Directional movement If today's High is higher than yesterday's High then: +DM = today's High  yesterday's High If today's Low is lower than yesterday's Low then: DM = yesterday's Low  today's Low If +DM is greater than DM then:DM = 0 If +DM is less than DM then:+DM = 0 The true range True range is the largest of: • today's High  today's Low • today's High  yesterday's Close • yesterday's Close  today's Low Moving average of +DM, DM and True Range • +DMMA = exponential moving average of +DM • DMMA = exponential moving average of DM • TRMA = exponential moving average of True Range The Directional Indicators • +DI = +DMMA / TRMA • DI = DMMA / TRMA Directional Index • DX = (+DI  (DI)) / (+DI + (DI)) The Average Directional Movement Index • ADX = the exponential moving average of DX • ADX = SUM[(+DI(DI))/(+DI+(DI)), N]/N Where: N — the number of periods used in the calculation. 10) Stochastic Oscillator: The stochastic oscillator provides information about the location of a current close in relation to the period's high and low. It ranges between 0% and 100%. A reading of 0% indicates that the close was the lowest price at which the security traded during the preceding x number of time periods. A reading of 100% indicates that the close was the highest price at which the security traded during the preceding x number of time periods. NOTE: You can specify the method (SMA, WMA or EMA), observation period, period of slow average and period of fast average when you create the study. 11) On Balance Volume: The concept behind the OBV indicator is: volume precedes price. OBV is a simple indicator that adds a period's volume when the close is up and subtracts the period's volume when the close is down. A cumulative total of the volume additions and subtractions forms the OBV line. If today’s close is greater than yesterday’s close then: OBV(i) = OBV(i1)+VOLUME(i) If today’s close is less than yesterday’s close then: OBV(i) = OBV(i1)VOLUME(i) If today’s close is equal to yesterday’s close then: OBV(i) = OBV(i1) Where: OBV(i) — is the indicator value of the current period. OBV(i1) — is the indicator value of the previous period. VOLUME(i) — is the volume of the current bar. 12) Rate of Change: ROC is a refined version of Momentum. The readings fluctuate as percentages around the zero line. You set the number of periods when you create the study. Rate of change =100(V/Vx) where: V  the latest closing price. Vx  the closing price of x bars ago. 13) Momentum: The Momentum is the difference between the current point (price or something else) and the point N periods ago. Momentum is calculated as a ratio of today’s price to the price several (N) periods ago. Momentum = CLOSE(i)CLOSE(iN) Where: CLOSE(i) = the closing price of the current bar. CLOSE(iN) = the closing bar price N periods ago 14) Average True Range: The Average True Range indicator is used to determine the volatility of the market. The idea is to replace the highlow interval for the given period, as the highlow does not take into consideration gaps and limit moves. You set the period when you create the study. The True Range is the largest of: • difference between the current maximum and minimum (high  low) • difference between the previous closing price and the current maximum • difference between the previous closing price and the current minimum The Average True Range is a simple moving average of the true range values. 15) Ultimate Oscillator: The Ultimate Oscillator combines the price action for three different time frames. You set the observations periods 1, 2, and 3 when you create the study. Time Frames: true low = min(low or prev close) buying pressure = close  true low true range = max(high  low, high  prev close, prev close  low) Buying pressure sum 1, buying pressure sum 2 and buying pressure sum 3 are calculated by adding up buying pressures for 3 different time frames. The same applies to the true range sum 1, 2 and 3. raw ultimate oscillator = 4 * (buying pressure sum 1 / true range sum 1) + 2 * (buying_pressure_sum_2 / true_range_sum_2) + (buying_pressure_sum_3 / true_range_sum_3) ultimate oscillator = raw ultimate oscillator / (4 + 2 + 1) ) * 100 16) Williams Oscillator: The Williams Percent Range (%R) indicator identifies the overbought/oversold levels. The scale extends from 0 to 100. %R = (HIGH(in)CLOSE)/(HIGH(in)LOW(in))100 Where: CLOSE = is today’s closing price. HIGH(in) = is the highest high over a number (n) of previous periods. LOW(in) = is the lowest low over a number (n) of previous periods. 
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#2




Re: Some TA Indicator Formulae
Hi Nautilus
Good CollectionThanksfor ur effortsfor the benefit of all Regards, joy_mitali 
#3




Re: Some TA Indicator Formulae
Can someone post the Amibroker afl for Volume Weighted MACD?

#4




Re: Some TA Indicator Formulae
Thank u the TA formulae provided

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