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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Smooth Drive who wrote (58963)9/14/2000 1:27:16 AM
From: Les H  Read Replies (1) | Respond to of 99985
 
AIQ has Velocity which is the same as Rate of Change of price. The default is 21 days. Acceleration is the ROC of Velocity. Below is glossary from a very old IRL copy which defines it using RS as basis instead of price:

Computing Velocity

The IRL measures velocity by comparing past and present relative strength values of the same stock. For example, it compares Boeing’s Internal Relative Strength for the current week to Boeing’s relative strength six weeks ago. (No weighting is applied.) The difference represents the speed.

Current Velocity = (Current weeks relative strength—6 weeks ago relative strength)

You can see the values resulting from this computation by choosing the "Raw Velocity" option in the View list for the Group Ranking window.

Computing Acceleration

IRL measures acceleration, a change in velocity, by comparing past and present velocity values. For example, it compares Boeing’s current velocity with Boeing’s velocity twelve weeks ago. (No weighting is applied.) The difference between the two velocities represents the acceleration.

Acceleration = Current Velocity—Past Velocity
(Current weeks relative strength—6 weeks ago relative strength) = Current Velocity
(6 weeks ago relative strength—12 weeks ago relative strength) = Past Velocity

You can see the values resulting from this computation by choosing the "Raw Acceleration" option in the View list for the Group Ranking window.