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Yeah, I wondered about the parentheses. While I was at it, I removed the
unnecessary one inside the power function.
MD = MD[1] + (c - MD[1]) / (K * period * power(c / MD[1], 4))
The logic of this still looks screwy to me. Looks like it's trying to be
an adaptive moving average but it's asymmetric. It moves slow when the
market's going up and fast when it's going down. I don't have Kaufman
handy so I'll make a leap of faith and assume it's trying to move fast
when the market moves fast and slow when it's choppy. While I'm at it,
I'll lose one of the redundant inputs and make it so it works (sorta)
with positive/negative data series....
{Dennis's Dynamics: DH 2002}
{unverified and untested}
input: price(close), smooth(6);
var: dd(price), delta(0), denom(1), factor(1);
if smooth > 1 then begin
delta = price - dd[1];
if price <> 0 then
denom = smooth * power(1 - absvalue(delta)/price, 4)
else
denom = smooth;
if denom > 1 then
factor = 1 / denom;
dd = dd[1] + delta * factor;
end else
dd = price;
plot1(dd, "DD");
--
Dennis
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