Short Cycle Indicator for Metastock

jonny

almost 8 years ago

Metastock

Francisco Lorca-Susino presents the Short Cycle Indicator. This method is expected to correct some of the difficulty in financial time series, which are said to have a long memory, obscuring some of the patterns. It is applied to intraday bars and is best interpreted over multiple time frames. The formula is based on the squared difference of two exponential moving aver-ages, and the relationship of those trendlines with the highest low and lowest high of the slower period, a form of stochastic indicator.

from: Francisco J. Lorca [Susino], “Exploiting Stock Market Cycles,” Futures (April 2009). The author appreciates the help of Mr. Lorca-Susino in this section. He can be reached at franlorcasusino@gmail.com.

Screenshots

Indicator / Formula

XF := Mov( C, 8, E );
XS := Mov( C, 20, E );
LH := LLV( H, 20 );
HL := HHV( L, 20 );
SF1 := 1000000;
SF2 := 100;
SF3 := 1000;
((XS-LH)*(XS-LH)+(XS-HL)*(XS-HL))/XS*(XF-XS)/XF*SF1;

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