Custom Formula Collection

Market Thrust Oscillator

The following formulas were taken from the article, "The Cumulative Market Thrust Line", by Tushar Chande, in the December 1993 issue of Technical Analysis of Stocks &
Commodities
.

Taken from Stocks &
Commodities
, V. 11:12 (506-511):The Cumulative Market Thrust Line by Tushar S. Chande, PhD.

STOCKS &
COMMODITIES contributor Tushar Chande originally introduced the concept of market thrust in August 1992 as a method by which to overcome the limitations of the Arms index. Since then, variations have been suggested on the theme and here, Chande offers the variation of a cumulative market thrust line, in which market thrust is cumulated to calculate a volumetric advance-decline line by including the effect of up and down volume."

Composite securities are created from 4 separate files. Advances, Declines, Upvolume, Downvolume. The article side bar presupposes the user has these four files.

Reuters Trend Data (RTD) supplies this data in two files. The tickers are X.NYSE-A (Advances, number and volume) and X.NYSE-D (Declines, number and volume). To use these two files, you must utilize two different custom formulas and the indicator buffer in MetaStockTM for DOS.

CompuServe supplies this data in 4 files. The tickers are NYSEI (Advances);
NYSEJ (declines);
NYUP (Advance volume) and NYDN (decline volume).

Dial/Data supplies this data in two files. Advances, number and volume and Declines, number and volume. The tickers are @*NAZ_K and @*NDZ_K.

For the Windows versions of MetaStock:

For RTD and Dial Data:

#1:C * V
#2:100 * ( ( P - ( C * V ) ) / ( ( P + ( C * V ) ) ) )

To plot it:

  • Load advances, plot formula #1.
     
  • Load declines.
     
  • Drag the plotted formula #1 from the advances in to the declines chart.
     
  • Plot the thrust indicator formula (#2) directly on top of the plotted formula #1 in the declines chart.

For CompuServe data:

#1:C
#2:100 * ( ( P - C ) / ( ( P + C ) ) )

To plot it:

  • Create a composite of the Advances * Up Volume.
     
  • Create a composite if the Declines * Down Volume.
     
  • Load advances composite , plot formula #1.
     
  • Load declines composite.
     
  • Drag the plotted formula #1 from the advances in to the declines chart.
     
  • Plot the thrust indicator formula (#2) directly on top of the plotted formula #1 in the declines chart.

** To create the cumulative thrust oscillator line perform the same steps as above except change formula #2 to:

Cum(100*(P-C)/(P+C)) for CompuServe data
Cum(100*(P-(C*V))/(P+(C*V))) for RTD and Dial Data

** To create the cumulative market thrust line, the formula is:

Cum(P-C) for CompuServe data
Cum(P-(C*V)) for RTD and Dial Data

You now have the thrust indicator plotted exactly as the article discusses.

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