Question on Swing Point function sp()

Question on Swing Point function sp()

Obuli Govindaraju
2012-07-29 15:08:37

I have a question on the swing point function sp() at this link http://www.quantshare.com/item-1121-swing-point-function-sp

As per the description the second parameter can be negative. If it is negative then the value returned by the function is positive if that particular sequence swing is swing high and negative otherwise.

so I tried the following code below on a security.

outputlist(sp(3,1)." , ".sp(3,-1));

sp(3,1) correctly returns the value which is a swing low (and returns as positive number). However I was expecting to see negative value returned for sp(3,-1) instead it returns the value of sp(3,0).

Am I missing something?

SystemTrade
2012-07-29 18:33:42

Best Answer

Hi Obuli,

sp(3, 0) returns the price level of last swing point, but from that information alone you do not see whether it is a swing high or low.
sp(3, 1) returns the price level of the swing point before, and you will know that this is a swing high if sp(3, 0) was a swing low and vice versa.
sp(3, -1) returns the price level of the LAST swing point with a positive sign if this is a swing high and negative in case of a swing low. It only works for the LAST swing point, because if you know whether the last one is high or low, you automatically know the sign of the swing point before.
If you want to see the sign on every swing point, just modify the last line of the code from "return(TA.Iff(point < 0, sti, TA.Absolute(sti)));" to "return(sti);"

Hope this helps.

Obuli Govindaraju
2012-07-29 20:13:35

Thanks for the quick reply.

I think I get it now. The problem is that how you define term "Last Swing point". You are defining the last swing point as the one currently developing where as I define it as the one that is developed.

Strictly speaking you dont even need this negative value parameter as if I simply compare sp(3,0) with sp(3,1) I can easily determine which one is swing low/high.

Get more messages

No more messages

Back


Trading Items Swing Point Function (SP) Swing Trading Indicator (STI) Accumulation Swing Index Swing Indicator Pivot Point Breakout Scanner	How-to Lessons How to display two stocks on the same chart How to calculate the average of a time series using the money man... How to plot arrows below/above candlesticks on a chart How to create a hatched area in a chart How to hide a trading indicator from a particular time frame
Related Forum Threads sp() function Interpretation of " DRAWDOWNEQ" function TimeframeApply function Composite Function Problem with performance calculation in custom function	Blog Posts How to create market indicators using the composite function - Pa... The 'inside period' function How to create market indicators using the composite function - Pa... How to create market indicators using the composite function - Pa... Getting Accurate Backtesting Results: Survivorship bias-free S&P ...