Custom Formula Collection

Trading Channel Index

The Trading Channel Index comes from an early version of AIQ's Stock Expert program. "The Trading Channel Index measures the location of average daily price relative to a smoothed average of average daily price. It is derived from the average difference between these two values."

To create the Trading Channel Index in MetaStock create the following custom formulae:

AP+:Average price
( H + L + C ) / 3

ESA+:Smoothed price average
Mov( Fml( "AP+" ) ,10 ,E ) + ( Mov( Ref( Fml( "AP+" ) ,-1 ) ,10 ,E ) )

D+:Price range estimate
Mov( ( Fml( "AP+" ) - Fml( "ESA+" ) ) ,10 ,E ) + ( Mov( Ref( Fml( "AP+" ) - Fml( "ESA+" ) ,-1 ) ,10 ,E ) )

CI+:Channel index
( ( Fml( "AP+" ) - Fml( "ESA+" ) ) / ( 0.015 * Fml( "D+" ) ) )

TRADING CHANEL INDEX:
Mov( Fml( "CI+" ) ,21 ,E ) + ( Mov( Ref( Fml( "CI+" ) ,-1 ) ,21 ,E ) )

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