[EquisMetaStock Group] Re: Palmer Indicator

[pumrysh <no_reply@xxxxxxxxxxxxxxx>]

Tony,

Either you forgot to attach the chart or Yahoo dumped it.
Better option would be to upload one to the files section.

Preston



--- In equismetastock@xxxxxxxxxxxxxxx, Tony M <t4tonym@xxx> wrote:
>
> Hi Mark,
> 
> Preston's formula does exactly what you asked for, so I'm not 
quite sure why you say that it's "not exactly what you were looking 
for"   ..... ???  However an alternative, longer and less elegant 
(but perhaps more "English language-like") coding of your concept 
might be:
> 
> {$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ :-)}
> HighestVolume45d:= HHV(V,45);
> LowestVolume45d:= LLV(V,45);
> VolRange:= HighestVolume45d - LowestVolume45d;
> Palmer:= 100*V/(VolRange + 0.000001);
> Smoothed:=Mov(Palmer,5,E);
> BuyThreshold:=67;
> SellThreshold:=33;
> BuySignal:=100;
> SellSignal:=0;
> SignalOutput:= If(Smoothed>BuyThreshold,BuySignal, If
(Smoothed<SellThreshold,SellSignal,50));
> {Now display results: 100= (your idea of) "Buy", 50=Null, 0=(your 
idea of) "Sell"}
> Smoothed;
> SignalOutput
> {$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ :-)}
> 
> Attached is a chart for you showing Apple Computer (APPL) price in 
the middle window and
> in the bottom window the actual volume (dark red bars), your 
smoothed "Palmer Indicator" (bright red line),
> and your proposed indicator (light blue line).
> 
> What you can see is that the indicator response due to high 
volume  (your proposed "Buy" signal) appears to make sense and to 
correspond to price turning points, either tops OR bottoms, but the 
low volume response (your proposed "Sell" signal) really does not 
correspond to anything.
> 
> This is because the big price action occurs when a lot of people 
(or a few people with very big orders) are in the market and the 
volume is high. Therefore I suggest that you re-examine your 
indicator, forget about the low volume threshold (because nothing 
much is happening then), try adjusting the high volume threshold 
value a bit, and use this high volume response not as a buy 
indicator (your original concept) but rather as an an indicator for 
TURNING POINTS, which could be EITHER tops or bottoms.
> 
> If you want to read an intersting book about using volume to help 
your trading, you might try Donald Cassidy's book "Trading on 
Volume - The Key to Identifying and Profiting from Stock Price 
Reversals". (McGraw Hill publishers, 2002).
> 
> 
> Happy trading,
> Cheers,
> TonyM 
> 
> 
> ----- Original Message ----
> From: markumansky <no_reply@xxxxxxxxxxxxxxx>
> To: equismetastock@xxxxxxxxxxxxxxx
> Sent: Thursday, May 24, 2007 3:50:36 PM
> Subject: [EquisMetaStock Group] Re: Palmer Indicator
> 
 
> 
>     
>Preston,
> 
> 
> 
> Not exactly what i was looking for but thank you for your 
suggestion
> 
> and assistance. Its very much appreciated! !!
> 
> 
> 
> Regards,
> 
> Mark




 
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