Metastock Indicator Formula |
Price Action Indicator (PAIN) |
If you were only given today's open, high, low and
close, how could you make heads or tails of it?
The Price Action Indicator (PAIN) can help. The formula
returns a single value that weighs
intra-day momentum (C-O), Late Selling Pressure (LSP)
(C-L), and Late Buying Pressure
(LBP) (C-H). The formula is proven by constructing ideal
limit-up and limit down scenarios in bond
futures. The output is shown to be consistent with the
interpretation of Japanese candlestick
patterns. See Michael B. Geraty (1997). "Getting Better
Directions" Futures Vol. 26: Aug. |
| Formula: |
((C-O)+(C-H)+(C-L))/2 |
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