Here's the Easy Language code for my article "From technical terms to technical tools."
Function Name: FearPobcOsc
Inputs: Price(Numeric), Length(Numeric), Level(Numeric);
Vars: AvgAvgs(0), HiPrice(0), LoPrice(0), AvgVal(0);
Array: MPAvg[10](0);
AvgAvgs = 0;
MPAvg[1] = MidPoint(Price,Length);
MPAvg[2] = MidPoint(MPAvg[1],Length);
MPAvg[3] = MidPoint(MPAvg[2],Length);
MPAvg[4] = MidPoint(MPAvg[3],Length);
MPAvg[5] = MidPoint(MPAvg[4],Length);
MPAvg[6] = MidPoint(MPAvg[5],Length);
MPAvg[7] = MidPoint(MPAvg[6],Length);
MPAvg[8] = MidPoint(MPAvg[7],Length);
MPAvg[9] = MidPoint(MPAvg[8],Length);
MPAvg[10] = MidPoint(MPAvg[9],Length);
HiPrice = Highest(Price,Level);
LoPrice = Lowest(Price,Level);
For value1 = 1 to Level begin
AvgAvgs = AvgAvgs + MPAvg[value1];
End;
AvgVal = AvgAvgs/Level;
IF HiPrice - LoPrice <> 0 Then
FearPobcOsc = 100*((Close - AvgVal) / (HiPrice - LoPrice));
Indicator Name: Point of Balance Close
Inputs: Price(close),Len(12), Level(10);
Vars: PosNeg(0);
If CurrentBar > Len*Level Then Begin
PosNeg = FearPobcOsc(Price,Len,Level);
If PosNeg > 0 Then
Plot1(PosNeg,"FearOsc")
Else
Plot2(PosNeg,"FearOsc");
End;
--Walter Downs, Internet: https://cistrader.com
E-mail: knight@cyberspy.com
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In Walter Downs's article "From technical terms to technical tools," he introduces the point of balance oscillator, two conditions to color bars and two system tests. All of these can be created quite easily in MetaStock 6.5. To create the point of balance oscillator, choose Indicator Builder from the Tools menu, click on the New button, and enter the following formula:
Point of Balance Oscillator
n := Input("Time Periods",1,100,12)/2;
POBC1 := (HHV(CLOSE, n) + LLV(CLOSE,n))/2;
POBC2 := (HHV(POBC1, n) + LLV(POBC1,n))/2;
POBC3 := (HHV(POBC2, n) + LLV(POBC2,n))/2;
POBC4 := (HHV(POBC3, n) + LLV(POBC3,n))/2;
POBC5 := (HHV(POBC4, n) + LLV(POBC4,n))/2;
POBC6 := (HHV(POBC5, n) + LLV(POBC5,n))/2;
POBC7 := (HHV(POBC6, n) + LLV(POBC6,n))/2;
POBC8 := (HHV(POBC7, n) + LLV(POBC7,n))/2;
POBC9 := (HHV(POBC8, n) + LLV(POBC8,n))/2;
POBC10 := (HHV(POBC1, 9) + LLV(POBC1,9))/2;
AV: = (POBC1 + POBC2 + POBC3 + POBC4 + POBC5 + POBC6 + POBC7 + POBC8 + POBC9 + POBC10) / 10;
POBCOsc := 100 * ((CLOSE - AV) / (HHV(CLOSE, 10)-LLV(CLOSE, 10)));
POBCOsc
To highlight bars based on the bull fear and bear fear conditions discussed in the article, choose Expert Advisor from the Tools menu, click on the New button and enter the following expert:
Bull Fear and Bear Fear Expert
Hightlights
Name: Bull Fear
Condition:
n := 12 {Time periods};
BullFear := (HHV(HIGH,n) - LLV(HIGH,n))/2 + LLV(HIGH,n);
CLOSE > BullFear
Color: Blue
Name: Bear Fear
Condition:
n := 12 {Time periods};
BearFear := (HHV(LOW,n) - LLV(LOW,n))/2 + LLV(LOW,n);
CLOSE < BearFear
Color: Red
To test the two systems discussed, choose System Tester from the Tools menu and enter both of the following systems:
Bull and Bear Fear System Test
Signal Formulas
--------------
Enter Long:
n := 12 {Time periods};
BullFear := (HHV(HIGH,n) - LLV(HIGH,n))/2 + LLV(HIGH,n);
Cross(CLOSE,BullFear)
Enter Short:
n := 12 {Time periods};
BearFear := (HHV(LOW,n) - LLV(LOW,n))/2 + LLV(LOW,n);
Cross(BearFear,CLOSE)
Four-Bar Fear System Test
Signal Formulas
--------------
Enter Long:
n := 12 {Time periods};
BullFear := (HHV(HIGH,n) - LLV(HIGH,n))/2 + LLV(HIGH,n);
BearFear := (HHV(LOW,n) - LLV(LOW,n))/2 + LLV(LOW,n);
Cross(CLOSE,BullFear) AND Ref(Sum(CLOSE < BullFear AND CLOSE > BearFear,4),-1) = 4
Close Long: LOW < Ref(LLV(LOW,3),-1)
Enter Short:
n := 12 {Time periods};
BullFear := (HHV(HIGH,n) - LLV(HIGH,n))/2 + LLV(HIGH,n);
BearFear := (HHV(LOW,n) - LLV(LOW,n))/2 + LLV(LOW,n);
Cross(BearFear,CLOSE) AND Ref(Sum(CLOSE < BullFear AND CLOSE > BearFear,4),-1) = 4
Close Short: HIGH < Ref(HHV(HIGH,3),-1)
After entering the systems, click on the Options button in the System Tester dialog, go to the Testing tab and change the trade price to open and set the trade delay to 1.
--Allan J. McNichol, EQUIS International
800 882-3040, 801 265-8886
Internet: https://www.equis.com
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These Wave Wi$e spreadsheet formulas implement Walter Downs's point of balance system.
WAVE WI$E spreadsheet formulas
A: DATE @TC2000(C:\TC2000\DATA,SP-500,STANDARD & POORS 500,DB)
B: HIGH
C: LOW
D: CLOSE
E: OPEN
F: VOL
G: NUMB 12 'Set to your desired lookback period
H: POBC1 (@MAX(CLOSE,NUMB+@MIN(CLOSE,NUMB)) /2
I: POBC2 (@MAX(POBC1,NUMB)+@MIN(POBC1,NUMB)) /2
J: POBC3 (@MAX(POBC2,NUMB)+@MIN(POBC2,NUMB)) /2
K: POBC4 (@MAX(POBC3,NUMB)+ @MIN(POBC3,NUMB)) /2
L: POBC5 (@MAX(POBC4,NUMB))+@MIN(POBC4,NUMB)) /2
M: POBC6 (@MAX(POBC5,NUMB) +@MIN(POBC5,NUMB)) /2
N: POBC7 (@MAX(POBC6,NUMB)+@MIN(POBC6,NUMB)) /2
O: POBC8 (@MAX(POBC7,NUMB)+@MIN(POBC7,NUMB)) /2
P: POBC9 (@MAX(POBC8,NUMB)+@MIN(POBC8,NUMB)) /2
Q: POBC10 (@MAX(POBC9,NUMB)+@MIN(POBC9,NUMB)) /2
R: Avsum (POBC1 + POBC2 + POBC3 + POBC4 + POBC5 + POBC6 + POBC7 +
POBC8 +POBC9+POBC10)/10
S: POBCosc 100*((CLOSE - AVSUM) / (@MAX(CLOSE,10) - @MIN(CLOSE,10)))
T: BLF ((@MAX(HIGH,NUMB) - @MIN(HIGH,NUMB))/2)+ @MIN(HIGH,NUMB)
U: BRF ((@MAX(LOW,NUMB) - @MIN(LOW,NUMB))/2)+ @MIN(LOW,NUMB)
V: POB ((BLF-BRF) /2) + BRF
W: Avg18 @MAVG(CLOSE,18)
X:
Y: chart @CHART(1)
Z:
==========End Formulas
--Peter Di Girolamo, Jerome Technology
908 369-7503, E-mail: jtiware@aol.com
Internet: https://members.aol.com/jtiware
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TRADESTATION / SUPERCHARTS 
TRADESTATION / SUPERCHARTS
