Traders' Tips from TASC Magazine

Trend Quality Indicator

David Sepiashvili's article "Trend Quality Indicator" introduces two new indicators;
Q-indicator and B-indictor. Both can be added to MetaStock with the formulas listed below.

To enter this indicator into MetaStock:

  1. In the Tools menu, select Indicator Builder.
  2. Click New to open the Indicator Editor for a new indicator.
  3. Type the name of the formula.
  4. Click in the larger window and type in the formula.
Name: Q-indicator
Formula: m:=Input("% Scalar trend period",1,25,4);
n:=Input("% Scalar noise period",1,500,250);
cf:=Input("% Scalar correction factor",1,250,2);
p1:=Input("First moving average periods",1,200,7);
p2:=Input("Second moving average periods",1,200,15);
rev:=Mov(C,p1,E)-Mov(C,p2,E);
pds:=If(rev>0,1,-1);
dc:=ROC(C,1,$);
cpc:=If(pds<>Ref(pds,-1),0,(dc*pds)+PREV);
trend:=If(pds<>Ref(pds,-1),0,(cpc*(1/m))+(PREV*(1-(1/m))));
dt:=cpc-trend;
noise:=cf*Sqrt(Mov(dt*dt,n,S));
trend/noise
Name: B-indicator
Formula: m:=Input("% Scalar trend period",1,25,4);
n:=Input("% Scalar noise period",1,500,250);
cf:=Input("% Scalar correction factor",1,250,2);
p1:=Input("First moving average periods",1,200,7);
p2:=Input("Second moving average periods",1,200,15);
rev:=Mov(C,p1,E)-Mov(C,p2,E);
pds:=If(rev>0,1,-1);
dc:=ROC(C,1,$);
cpc:=If(pds<>Ref(pds,-1),0,(dc*pds)+PREV);
trend:=If(pds<>Ref(pds,-1),0,(cpc*(1/m))+(PREV*(1-(1/m))));
dt:=cpc-trend;
noise:=cf*Sqrt(Mov(dt*dt,n,S));
temp:=If(Abs(trend)+Abs(noise)=0,1,Abs(trend)+Abs(noise));
(Abs(trend)/temp)*100;

Below is these indicators would look on a chart of SPY:

« Trend Continuation Factor
Trend Trigger Factor »


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