Traders' Tips from TASC Magazine

The Wilson Relative Price Channel

Leon Wilson’s article, “The Wilson Relative Price Channel,” introduces a new way to show overbought and oversold conditions. The procedure and formula for displaying these channel lines in MetaStock is listed below:

To enter these indicators 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.
  5. Click Ok to close the Indicator Editor.

    6. Name: Wilson Relative Price Channel
    Formula:
    Periods:=Input("Channel Periods",1, 250, 34);
    Smoothing:=Input("Smoothing", 1, 55, 1);
    Value2:=Input("Over Bought", 50, 99, 70);
    Value3:=Input("Over Sold", 1, 50, 30);
    Value4:=Input("Upper Neutral Zone", 50, 99, 55);
    Value5:=Input("Lower Neutral Zone", 1, 50, 45);

    OB:=Mov(RSI(Periods)-Value2,Smoothing,E);
    OS:=Mov(RSI(Periods)-Value3,Smoothing,E);
    NZU:=Mov(RSI(Periods)-Value4,Smoothing,E);
    NZL:=Mov(RSI(Periods)-Value5,Smoothing,E);

    {OverSold}
    CLOSE-(CLOSE*(OS/100));

    {OverBought}
    CLOSE-(CLOSE*(OB/100));

    {NeutUp}
    CLOSE-(CLOSE*(NZU/100));

    {NeutLower}
    CLOSE-(CLOSE*(NZL/100));

William Golson
Equis International

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