Does an indicator exist which can be used with Wealth Lab based on the McGinley Dynamic trading instrument?
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Great!
Thx.
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The formula above appears to be a simplification. Here's an explanation made by its author on
DailyFX forums:
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This is a creation for Metastock before it could do recursive calculations. It is nothing like my indicator. I created this in 1990 and it was published in the Market Technician's Assn Journal in Summer 1997. I can e-mail you the pages of that article. The equation is: D = D1 + (I - D1) / ( N * (I/D1)^4) where D1 = yesterday's Dynamic, I = today's price, N = smoothing factor. If you want the indicator to fit as closely as, say, a 20da MA, make N = 60% of 20. Larger fits more loosely, stays out of consolidations longer. This automatically speeds up when the market does and vice versa.
Honestly, I can't see how this equation could work at all because D1 has always to be 0 on the 1st bar, and you have to divide by zero. Here's the broken code:
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Added to our Community Indicators library v2010.12.
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