Go to Jeff Salisbury LWGate Home Page.From: <vchang@win-invest.com>
Subject: Re: [CANSLIM] Moving Averages
Date: Thu, 1 Aug 2002 23:36:42 +0100
Next Article (by Author): RE: [CANSLIM] canslim stocks "Duke Miller"
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MessageI am looking at something called Volume Adjusted Moving Average =
in conjunction with CandleVolume Charts, because of the importance of =
volume in conjunction with price as signals. I have not got a web link =
for this, but here is a snip from the Metastock Help file:
<SNIP>
Dick Arms, well-known as the developer of the Arms Index and the =
equivolume charting method (see Equivolume), has developed a unique =
method for calculating moving averages. In keeping with his prior work, =
the calculation method incorporates volume and is appropriately called a =
volume adjusted moving average .
The calculation for a volume adjusted moving average is somewhat =
complex; however, it is conceptually easy to understand. All moving =
averages (even volume adjusted) use some type of weighting scheme to =
"average" the data. Exponential and weighted moving averages assign the =
majority of weight to the most recent data. Simple moving averages =
assign the weight equally across all data. Variable moving averages =
assign the majority of the weight to the most volatile data. And as its =
name implies, volume adjusted moving averages assign the majority of =
weight to the day's with the most volume.
A volume adjusted moving average is calculated as follows:
1. Calculate the average volume using every time period in the chart.
2. Calculate the volume increment by multiplying the average volume by =
0.67.
3. Calculate each period's volume ratio by dividing each period's actual =
volume by the volume increment.
4. Starting at the most recent time period and working backwards, =
multiply each period's price by the period's volume ratio and =
cumulatively sum these values until the user-specified number of volume =
increments is reached. Note that only a fraction of the last period's =
volume will likely be used.
<SNIP>
rgds
Victor Chang
- ----- Original Message -----=20
From: Katherine Malm=20
To: canslim@lists.xmission.com=20
Sent: Tuesday, July 30, 2002 11:36 PM
Subject: Re: [CANSLIM] Moving Averages
Hi Duke,
I'll add to Gene's reference with:
=
http://stockcharts.com/education/What/IndicatorAnalysis/indic_movingAvg.h=
tml
Katherine
----- Original Message -----=20
From: Gene Ricci=20
To: canslim@lists.xmission.com=20
Sent: Tuesday, July 30, 2002 5:23 PM
Subject: Re: [CANSLIM] Moving Averages
Simple Moving Average - SMA
http://www.investopedia.com/terms/s/sma.asp
=20
Exponential Moving Average - EMA
http://www.investopedia.com/terms/e/ema.asp=20
I use DMA as follows 50 day MA (simple)
Gene=20
----- Original Message -----=20
From: Duke Miller=20
To: CANSLIM=20
Sent: Tuesday, July 30, 2002 5:08 PM
Subject: [CANSLIM] Moving Averages
Can somebody please explain to me the difference between EMA and =
DMA on moving averages?
Duke
This email, including any attachments, was scanned by Norton =
Anti-Virus prior to being sent.=20
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<HTML><HEAD><TITLE>Message</TITLE>
<META http-equiv=3DContent-Type content=3D"text/html; =
charset=3Diso-8859-1">
<META content=3D"MSHTML 6.00.2716.2200" name=3DGENERATOR>
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</HEAD>
<BODY bgColor=3D#ffffff>
<DIV><FONT size=3D2>I am looking at something called Volume Adjusted =
Moving=20
Average in conjunction with CandleVolume Charts, because of the =
importance of=20
volume in conjunction with price as signals. I have not got a =
web=20
link for this, but here is a snip from the Metastock Help =
file:</FONT></DIV>
<DIV><FONT size=3D2></FONT> </DIV>
<DIV><FONT size=3D2><SNIP></FONT></DIV>
<DIV><FONT size=3D2>Dick Arms, well-known as the developer of the Arms =
Index and=20
the equivolume charting method (see Equivolume), has developed a unique =
method=20
for calculating moving averages. In keeping with his prior work, =
the=20
calculation method incorporates volume and is appropriately called a =
volume=20
adjusted moving average .<BR>The calculation for a volume adjusted =
moving=20
average is somewhat complex; however, it is conceptually easy to=20
understand. All moving averages (even volume adjusted) use some =
type of=20
weighting scheme to "average" the data. Exponential and weighted =
moving=20
averages assign the majority of weight to the most recent data. =
Simple=20
moving averages assign the weight equally across all data. =
Variable moving=20
averages assign the majority of the weight to the most volatile =
data. And=20
as its name implies, volume adjusted moving averages assign the majority =
of=20
weight to the day's with the most volume.</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=3D2>A volume adjusted moving average is calculated as=20
follows:</FONT></DIV>
<DIV> </DIV>
<DIV><FONT size=3D2>1. Calculate the average volume using every =
time period=20
in the chart.<BR>2. Calculate the volume increment by multiplying =
the=20
average volume by 0.67.<BR>3. Calculate each period's volume ratio =
by=20
dividing each period's actual volume by the volume=20
increment.<BR>4. Starting at the most recent time period and =
working=20
backwards, multiply each period's price by the period's volume ratio and =
cumulatively sum these values until the user-specified number of volume=20
increments is reached. Note that only a fraction of the last =
period's=20
volume will likely be used.</FONT></DIV>
<DIV><FONT size=3D2><SNIP></FONT></DIV>
<DIV><FONT size=3D2></FONT> </DIV>
<DIV><FONT size=3D2>rgds</FONT></DIV>
<DIV><FONT size=3D2></FONT> </DIV>
<DIV><FONT size=3D2>Victor Chang</FONT></DIV>
<DIV><FONT size=3D2></FONT> </DIV>
<DIV>----- Original Message ----- </DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Dkmalm@earthlink.net =
href=3D"mailto:kmalm@earthlink.net">Katherine=20
Malm</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Tuesday, July 30, 2002 =
11:36=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] Moving=20
Averages</DIV>
<DIV><BR></DIV>
<DIV>Hi Duke,</DIV>
<DIV> </DIV>
<DIV>I'll add to Gene's reference with:</DIV>
<DIV> </DIV>
<DIV><A=20
=
href=3D"http://stockcharts.com/education/What/IndicatorAnalysis/indic_mov=
ingAvg.html">http://stockcharts.com/education/What/IndicatorAnalysis/indi=
c_movingAvg.html</A></DIV>
<DIV> </DIV>
<DIV>Katherine</DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV style=3D"FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Dgenr@swbell.net href=3D"mailto:genr@swbell.net">Gene =
Ricci</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
title=3Dcanslim@lists.xmission.com=20
=
href=3D"mailto:canslim@lists.xmission.com">canslim@lists.xmission.com</A>=
=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Tuesday, July 30, 2002 =
5:23=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Re: [CANSLIM] Moving =
Averages</DIV>
<DIV><BR></DIV><FONT face=3D"Comic Sans MS">
<TABLE border=3D0>
<TBODY>
<TR>
<TD><A=20
=
href=3D"http://www.investopedia.com/terms/s/sma.asp"><STRONG><FONT=20
face=3DVerdana size=3D2>Simple Moving Average -=20
SMA</FONT></STRONG></A><BR><A=20
href=3D"http://www.investopedia.com/terms/s/sma.asp"><FONT =
face=3DVerdana=20
=
size=3D2>http://www.investopedia.com/terms/s/sma.asp</FONT></A><BR></TD><=
/TR>
<TR>
<TD><FONT face=3DVerdana size=3D2><B><A=20
=
href=3D"http://www.investopedia.com/terms/e/ema.asp">Exponential Moving=20
Average - EMA</A></B><BR><A=20
=
href=3D"http://www.investopedia.com/terms/e/ema.asp">http://www.investope=
dia.com/terms/e/ema.asp</A></FONT></TD></TR></TBODY></TABLE>
<DIV> </DIV>
<DIV>I use DMA as follows 50 day MA (simple)</DIV>
<DIV> </DIV>
<DIV>Gene </DIV>
<DIV></FONT> </DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV style=3D"FONT: 10pt arial">----- Original Message ----- =
</DIV>
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Ddukemill@tampabay.rr.com=20
href=3D"mailto:dukemill@tampabay.rr.com">Duke Miller</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A=20
title=3Dcanslim@lists.xmission.com=20
href=3D"mailto:canslim@lists.xmission.com">CANSLIM</A> </DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Tuesday, July 30, =
2002 5:08=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> [CANSLIM] Moving=20
Averages</DIV>
<DIV><BR></DIV>
<DIV><SPAN class=3D687010722-30072002><FONT face=3DArial>Can =
somebody please=20
explain to me the difference between EMA and DMA on moving=20
averages?</FONT></SPAN></DIV>
<DIV><SPAN class=3D687010722-30072002><FONT=20
face=3DArial></FONT></SPAN> </DIV>
<DIV><SPAN class=3D687010722-30072002><FONT=20
face=3DArial>Duke</FONT></SPAN></DIV>
<DIV> </DIV><FONT size=3D2>
<P align=3Dleft>This email, including any attachments, was scanned =
by Norton=20
Anti-Virus prior to being sent. </P></FONT>
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