I'm not sure you have to rescale any of the indicators. It appears that BNS is based more on several indicators moving together to show reversals in trend.
The main indicators are:
1. A "BradCCI" version of CCI, which is: (((H+L+C)/3)-Mov(C,35,S))/.015*Std((H+L+C)/3,35)
2. The other component of BradCCI, which is: Std(((h+l+c)/3),28)
3. RedLine. For those of us without RedLine, we can use Slow Stochastics(8) or experiment with a weighted stochastic oscillator (8, 5).
The reason you would rescale them would be to put them all in one window -- or in profit testing to look for crossovers -- but I don't think BNS is based on crossovers of these indicators. It strikes me that Bill is overlaying indicators just to find points when they act together. So all you have to do -- I think -- is show when those three indicators change direction together.
1. With the first indicator, the CCI part of BradCCI, I suppose you could look for 0 crossovers.
2. What to do with Standard Deviation? Maybe some sort of system that looks for crossovers with its moving average? Maybe someone out there has a standard deviation system to show changes in trend.
3. With stochastics, you could use some sort of traditional system, with a threshold such as 30 to cross. Or you could combine this with some sort of stochastics crossover system: stoch(8,5)>mov(stoch(8,5),5,s)
The formula for BNS, then has to look for each of these turning up or down. The formula won't have to equalize the scales, any more than it would if you had a system combining the traditional CCI with Stochastics. The rescaling came in earlier because we were trying to get all the indicators into one window. But that was for the purpose of seeing them together, not for a profit-testing system.
Or am I entirely mistaken?
One last thing: the present formula for BNS out there is made up of two components: the first part of BradCCI: (((H+L+C)/3)-Mov(C,35,S))/.015*Std((H+L+C)/3,35)
It's been rescaled so it can fit into one window or one profit-testing system with the other part of the formula, which is a price oscillator of some kind, again rescaled. For the profit testing system, one of these has been subtracted from the other to look for crossovers.
It's an intriguing system, and the formula is worth copying, but be aware that Bill's BNS is quite different. I'll get burned at the stake at TAINJ for saying this, I know, but really kids, it's a different kettle of fish. That said, I should add that it's quite brilliant, with the rescaling and all, and Wolfgang deserves several drinks for it, and Chandler, too, for translating it for WOW. |
