mslattery@dc.rr.com
91 posts
msg #99338
- Ignore mslattery@dc.rr.com |
2/22/2011 4:11:54 PM
The following filter is looking for diminishing candle heights. The following filter was written to try and determine when these candles have collapsed indicating approaching tops and bottoms.
It is not working perfectly because of the relative changes in each days price. As the price goes up the relative values go up making the last calculation out of range. (todays candle height compared to the sum of the last 6 candle heights / 100) With todays candle height divided by the result of the previous calculation.
So the question becomes how do you normalize each days candle height so you are comparing their relative sizes not their prices?
Thanks, Michael
|
mslattery@dc.rr.com
91 posts
msg #99349
- Ignore mslattery@dc.rr.com |
2/22/2011 8:39:57 PM
Got this answered. Thanks
|
glgene
613 posts
msg #99353
- Ignore glgene |
2/22/2011 10:27:47 PM
So what's the answer. Please share. Thanks.
Gene
|
wantonellis
155 posts
msg #99414
- Ignore wantonellis
modified |
2/27/2011 8:59:53 AM
|
Kevin_in_GA
4,599 posts
msg #99416
- Ignore Kevin_in_GA
modified |
2/27/2011 11:16:02 AM
That is not so much "normalization" as it is determining the Z-score for the data point (e.g., the number of standard deviations from the mean, like Bollinger bands).
For a score greater than 2 or less than -2, things are looking to change (revert back to the mean). On candle height I'm not sure where you are going with this - is there statistical evidence for a compression of candles near tops/bottoms? Please post a link or cite the reference, as I would love to learn more about it.
|
wantonellis
155 posts
msg #99418
- Ignore wantonellis
modified |
2/27/2011 12:48:02 PM
|