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Mr. Morris:
Below is an excerpt from the Futures magazine article, which gives an
insight into the logic that was behind the Dynamic Momentum Oscillator,
a.k.a.. Dynamo.
Dynamic Momentum Oscillator = Mc - (MAo-O)
Mc = Oscillator midpoint (50%)
MAo = Moving Average of the Oscillator
O = Original oscillator value on the given day
There have been two or three ELAs posted to the omega-list and the one I
feel is probably closest to addressing the above concept was the one by Gary
Fritz (shown below).
Input: OscLen(10),MALen(20),LowBand(23),HiBand(77);
Vars: AvgFastK(0);
AvgFastK = Average(FastK(OscLen),OscLen);
Plot1(50 + (AvgFastK-Average(AvgFastK,MALen)),"Plot1");
Plot2(LowBand,"Plot2");
Plot3(HiBand,"Plot3");
A friend of mine wrote an ELA very similar to Gary's, and it is shown below.
Input: RStocLen (10), MALen (20);
Vars: RStoc (0), RStocMA (0), Osc (10), Dynamo (0);
RStoc = FastK (RStocLen);
RstocMA = (Average(RStoc,MALen));
Dynamo = 50-(RStocMA-RStoc);
Plot1 (Dynamo, "Dynamo");
Plot2 (80, "80lev");
Plot3 (20, "20lev");
At this time my conclusion is that this indicator looks good when you choose
the place that it is to be used. Using real-time on all data it does not
seem to be that great.
Regards,
David
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