Stocks & Commodities V. 22:10 (10-15): Letters To S&C by Technical Analysis, Inc.
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I want to calculate a 13-day exponential moving average (EMA) of closing prices and apply a 21-day rate of change to it. I searched your website and found a
reference to the Traders’ Tips column from the October 1994 issue of S&C (Traders’ Tips, Volume 12:10). Does this article give me the formula to do it?
v 12:10 (441-442)
This month’s Traders’ Tips all focus on the rate of change (ROC) indicator discussed in Bruce Faber’s article. The rate of change is a function already available in both SuperCharts and TradeStation. From within the Quickeditors of either program, you can create a new indicator.
The performance of ROC can often be improved by smoothing. An example is given in CompuTrac SNAP. Also, Behold! and MetaStock’s System Tester can be used to measure the performance of the ROC indicator.
Thanks for your help.
N. SIEGEL, via email