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Rick:
Thanks for your comments. After the discussion of how WOW (Market
Arts)screwed up there system analyzer, and because of Equis' experience, I
would not have expected such a gross boo boo. Perhpas they are not having
the program checked by traders who have the skills necessary to ch
At 05:46 AM 9/29/97 +0900, Rick Mortellra wrote:
> Hi Max,
>
>The MS interpretation of Chande's VIDYA indicator can be found under the
> built-in VMA moving average. HOWEVER, EQUIS BOTCHED THE WHOLE CONCEPT AND
> IT IS COMPLETELY SCREWED UP!
>
> To see what I mean simply plot a SMA, EMA, and the VMA of any security
> using the same "period" input for each. Logically, the VMA should be the
>most sensitive, almost hugging the price bars. But as you'll notice MS's
> VMA is the least sensitive. In fact, it's downright dead!
>
> Further, the fact that MS even asks for a "period" input for the VMA is
>dumb, since the "period" by definition is supposed to be VARIABLE anyway.
> The only inputs required under Chande's formula definitions are for the
> "volatility index" and a scaling factor. MS says it has fixed these as the
> 9-period CMO for the index with a scaling factor .78, so no inputs should
> even be required. Finally, a quick glance at the built-in formula given in
> the manual shows Equis didn't even get the scaling factor part right.
>
> Fortunately, the VIDYA is pretty easy to build and in MS 6.5 the new
> "input" function lets you play around with the scaling factor without
> rewriting the formual each time. Changing the period of the volatility
> index doesn't affect the average significantly. Nor does using different
> variables for the index. Afterall, it only varies from 0 to 1 anyway.
>
> I've discussed this with Equis tech support when 6.0 first came out, and
> they've recluctantly agreed the VMA might be implemented wrong but
> suggested I contact Chande myself to check. Yeah, right! Too bad, because
> the VIDYA concept minimizes the time lag problems of a crossover system,
> and lets you grab more of a price move.
>
> Hope this helps,
> Rick Mortellra
> Tokyo Japan
>
>
>> ----------
>> > From: Max Turner <m.turner@xxxxxxxxxxxx>
>> > To: metastock-list@xxxxxxxxxxxxx
>> > Subject: Vidya and other Chande/Kroll indicators
>> > Date: Sunday, September 28, 1997 8:07 AM
>> >
>> > List'rs
>> >
>> > Has anyone programmed the indicators from Chande and Kroll's book (The
>> New
>> > Technical Trader) into Metastock formulae? In particular I am
>interested
>> in
>> > VIDYA and the Stops indicator at the end of their book.
>> >
>> > Nowadays many authors give the formulae but in this interesting book
>they
>> > give the general formulae only.
>> >
>> > Would appreciate any replies.
>> >
>> > Thanks in advance.
>> >
>> > Max
>> >
>> >
>> > K
>> >
>
>
>
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