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Strategies & Market Trends : TA-Quotes Plus -- Ignore unavailable to you. Want to Upgrade?

To: Jeff Grover who wrote (2814)	1/2/1998 12:01:00 PM
From: Richard Estes	Read Replies (2) \| Respond to of 11149

You are good. Shows the power of programming.

To: Jeff Grover who wrote (2814)	1/2/1998 1:54:00 PM
From: Bob Jagow	Read Replies (2) \| Respond to of 11149

Jeff, I haven't gone thru your calcs, but you probably got tripped up by Wilder's wierd MA calc method. Perry Kaufmann, "The New Commodity Trading Systems and Methods", 1987 explains that Wilder calculates 'his MA' for DMI and RSI by seeding his 14-day avgs with the SMA then continued by "averaging off": new = (13old + new)/14. I have always assumed that Wilder did it that way not knowing the correct EMA smoothing factor of 2/(N+1) since Perry cites it as JK Hutson (TASC May/June 1984). Therefore the real period of his DMI and RSI indicators are not 14 but 27 days! Re CSI, Perry (p 398) shows CSI = 100ADXR*ATR14(V/M/(150+C) where ADXR is the avg of today's ADX with that of 14 days ago, ATR14 is the 14-day ATR, V = value of 1 cent move (in dollars), M = margin (in dollars), C = commission (in dollars). Bob