From: draggiedriver <draggiedriver[at]yahoo.com.au>
To: equismetastock[at]yahoogroups.com <equismetastock[at]yahoogroups.com>
Date: Thursday, October 13, 2005, 1:52:31 AM
Subject: [EquisMetaStock Group] Normalising the 'Q'
Files: <none>

Hi everyone.

Here's my story. I wanted to have a look at exit techniques; and I found Richard Dale's dll for an ATR-based exit - I love it: but Richard makes the point that the ATR multiplier varies according to one's outlook - 2.5 for the short-termers, 3.5 to 4 for us slower types.

That got me thinking: what if one started out as a long-termer, but saw a good hard trend developing such that it would be prudent to take the profits off the table earlier. I had a look at perhaps using the Aroon oscillator as a factor to the ATR multiplier, but perhaps it's a little too coarse: that's where I joined the 'Q'.

Plagiarising shamelessly from Jose's site, I saw how he normalised the MACD and came up with this:

Driver's Q Oscillator

{Plagiarised shamelessly from Jose Silva and David Sepiashvili}

{Inputs}
m:=Input("% Scalar trend period",1,25,4);
n:=Input("% Scalar noise period",1,500,250);
cf:=Input("% Scalar correction factor",1,250,2);
p1:=Input("First moving average periods",1,200,7);
p2:=Input("Second moving average periods",1,200,15);
p3:=Input("Normalising periods, (1=none)",
1,2520,252);
{Q Directional indicator - from Equis}
rev:=Mov(C,p1,E)-Mov(C,p2,E);
pds:=If(rev>0,1,-1);
dc:=ROC(C,1,$);
cpc:=If(pds<>Ref(pds,-1),0,(dc*pds)+PREV);
trend:=If(pds<>Ref(pds,-1),0,(cpc*(1/m))+(PREV*(1-(1/m))));
dt:=cpc-trend;
noise:=cf*Sqrt(Mov(dt*dt,n,S));
Q:=trend/noise;
{Normalising}
Qnorm:=(Q-LLV(Q,p3)/(HHV(Q,p3)-LLV(Q,p3)+.000001)*100);
Qnorm;

It's hopeless! and I have no idea where I went wrong. All I want is a bounded Q oscillator. (The B is no good for my purposes as I'm long only.) Puleeease?

Newton said that he merely stood on the shoulders of giants; so I'm quite prepared to ask for a hand up.

Many thanks in advance

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From: Jose Silva <josesilva22[at]yahoo.com>
To: equismetastock[at]yahoogroups.com <equismetastock[at]yahoogroups.com>
Date: Thursday, October 13, 2005, 8:51:02 AM
Subject: [EquisMetaStock Group] Re: Normalising the 'Q'
Files: <none>

DD, that's some story - I look forward to the film version... : )

The easiest way to normalize Q (or any plot), is this way:

The above code will produce a somewhat wild plot for the first 100~300 bars or so, as the normalizing code finds new plot value extremes. This will settle down to a Q-identical plot (0~100% bounded) after this initial period.

You now, I've applied the above to the wife, and it works just great:

---8<--------------
Manic:=Highest(MoodSwings);
Depressive:=Lowest(MoodSwings);

MoodNormalized:=(MoodSwings-Depressive)
/Max(Manic-Depressive,.000001)*100;

MoodNormalized
---8<--------------

Warning:
The above will produce a somewhat interesting time for the first year of marriage or so, as the normalizing code finds new mood extremes.

jose '-)
http://www.metastocktools.com

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From: draggiedriver <draggiedriver[at]yahoo.com.au>
To: equismetastock[at]yahoogroups.com <equismetastock[at]yahoogroups.com>
Date: Thursday, October 13, 2005, 8:59:10 PM
Subject: [EquisMetaStock Group] Re: Normalising the 'Q'
Files: <none>

Hi Jose

Am working on the script now. I see it as a 'triumph over adversity' saga chronicling the adventures of a naive but determined novitiate to the black arts of TA.

Have you pencilled in for a Yoda-type appearance as the Oracle. :p

I liked your moodswing code, although I think you may have minimised the utimately random nature of the underlying function. 'Normal' may turn out to be an illogical premise.

BTW, I got the code to work overnight - a misplaced ) don't you know!

Cheers n Beers, and Thanks

DD