Re: Higher timeframe indicator on a lower timeframe chart

[Abhijit Dey <omegalist@xxxxxxxxxx>]

Gary & Jimmy,

Many thanks for the reply. Gary's code is what I used, but put it in a 
function. I modified the standard XAverage function like this and using 
it as follows:

XAverageMulti (function)
-------------
input:
   Price(NumericSeries), Length(NumericSimple),
   BI(NumericSimple), TFMult(NumericSimple);

var:
   Factor(0);

If(Length + 1 <> 0) then begin
   if CurrentBar <= 1 then begin
       Factor = 2 / (Length + 1);
       XAverageMulti = Price;
   end
   else begin
       if(Mod(BarNumber, BI*TFMult) = 0) then
           XAverageMulti = Factor * Price + (1 - Factor) * XAverageMulti[1]
       else
           XAverageMulti = XAverageMulti[1];
   end;
End;

This enables us to calculate XAverage of any interval 
multiplier(TFMult). So, with a 3 minute chart we can get ema of 3, 6, 9 
etc. minutes.

In the custom ema indicator, I call it like so

bi = BarInterval;
if mod(BarNumber, bi*TFMult) = 0 then
begin
   ema = XAverageMulti(Price, Length, bi, TFMult);
   Plot1(ema, "ema");
end;

In the indicator, "if mod(BarNumber, bi*TFMult) = 0 then" is only needed 
to avoid plotting the value every 1 minute bar, instead of plotting 
every 13th bar, as intended. In a strategy, if we are using a 1 minute 
bar interval, XAverageMulti(Close, 34, 1, 13) would keep reporting the 
same ema 13 times and then changeover to the new ema value, which would 
then again be used 13 times.

Perfect!! Goodbye 13 minute chart, I guess. Woohoo!! KISS quest continues.

Abhijit

PS : While Thunderbird was running the spell check on this email, it 
suggested I replace Woohoo with Boohoo. I wonder why the second one 
deserves a place in the dictionary, but not the first one. Is is because 
the world predominantly a sad place?

> (untested, since I don't have my TS here, but should be close)
>
> inputs:  EMAlen(34);
> vars: alpha(2/(1+EMAlen)), EMA(Close);
>
> if mod(BarNumber, 13) = 0 then 
>  EMA = alpha * Close + (1-alpha) * EMA;
>
> alpha gets initialized to the proper value for an EMAlen-length 
> xaverage.  EMA gets initialized to the value of Close on the 
> first bar, to give it a reasonable starting value.
>
> Then every 13 bars, you just calculate the new EMA value using 
> the close of that 1min bar.
>
> This may not exactly match the EMA on a 13min chart, because it 
> may be offset a bit.  E.g. the 13min chart might have bars ending 
> at 10:00, 10:13, 10:26, etc, while this code might be 
> recalculating on the bars ending at 10:03, 10:16, 10:29, etc.  
> But the results should be close enough for your purposes.
>
> Gary