Traders' Tips from TASC Magazine

Normalization

In his article "Normalization", Brian Bell introduces some methods for normalizing indicators. These methods can be easily created in MetaStock 6.52 or higher. Select Indicator Builder from the Tools Menu, click New and enter the formula for the desired method.

Name: Simple Moving Average Oscillator
OscP(4,8,S,$)

Name: Simple MA Osc norm to Std Dev
OscP(4,8,S,$)/Stdev(C,8)

Name: Simple MA Osc norm to Ave True Range
OscP(4,8,S,$)/ATR(8)

Name: Simple MA Osc norm to Historical Range
plot:=OscP(4,8,S,$);
(( plot - LLV(plot,200) / (HHV(plot,200)-LLV(plot,200))) * 100

Note:To apply these methods to different indicators replace the Simple Moving Average Oscillator portion with the desired indicator's formula.


Contents