Blue Line - 13 day Smoothed Moving Average by Glen Wallace for Metastock

Subject: Moving Averages, Profitunity, “New Trading Dimensions”

Raminder Singh:

Bill William’s in his 3rd chapter mentions the “Alligator”, which he describes as, the Blue Line – 13 day smoothed moving average, offset 8 days into the future the Red Line – 8 day smoothed moving average, offset 5 days into the future the Green Line – 5 day smoothed moving average, offset 3 days into the future

I downloaded the demo from www.profitunity.com. However, with the same stock, under MetaStock 6.5.2, I can’t seem to get the same values as his software. I’ve tried, Simple, Exponential, Weighted, all the ones available in MetaStock. I even tried experimenting with the time periods values.

Comes close, but not the same. I’d be highly obliged if somebody would shed some light on this.

Glen Wallace:

The problem is in their “smoothing.” Below is the code I wrote for the Red Line based on an explanation they gave me about a year ago. I can dig up that e-mail if you wish. Also, I recall Daryl Guppy’s site (http://www.guppytraders.comgup59.htm) has all the code (written by our own Adam Hefner, I think) for Bill Williams’ methods.

Be careful with Bill Williams’ system, though, it’s not the holy grail he describes in his books.

Hope this helps.