VORTEX AIMing

[Conrad]

Thanks LC for the links. I will take some time to read them in detail later on.

I I have looked at the Williams %R Chart before(You send me some information on this) but have not yet spend time to comprehend the mechanics for the calculation. The practical side of all this still is an issue(for programming but also for the basis idea) that needs thinking out(this would also be the case for using any other type of average for the trading range bands): Am I going to calculate the %R Bands myself with the formula that defines this indicator(using the chosen period) or shall I simply import the top/bottom bands from some other website? Things like that are important for me after I have chosen the type of calculation for the trading bands. I have also read about the Bollinger Bands, which I can get, for example, from the ABN website.

This question ties in with another practical issue: when I calculate the Trading Range myself using some standard formula for the pricing data and the period then I have a choice of using daily prices, weekly prices, monthly prices, or simply the particular trading history of the Vortex Portfolio. This last method would amount to a price date set that may have several prices on a daily basis and other prices that are weeks or months apart. This would give a different output for the average than if I would use daily prices.

The next question that I would want to know is how the available formulas . . .Williams. . .Bollinger . . .etc. are different from each other and why they are different, and if they are symmetric or not. When I look at the Bollinger Bands they do certainly not appear symmetric to me.

There is at this time no reason why I would want to have the bands to be symmetric, just as I have no reason for insisting on symmetry. At this moment I am trying to define(fine tune) the acceleration or deceleration formula of the Buy/Sell orders. After I have done that it is simply a matter of defining a Reference Point(could be a Mid Point or Average) and then some type of upper and lower bound that characterizes the best point for concluding:

"After this point the stock price is most likely to reverse"

I can imagine that even this question is subject to what I would define as most likely. From now on I will take some time out to read up on the definitions of the various trading range averages and try to understand why these indicators have been developed. I could also simply define my own trading range indicator(Vortex TRI for example). Such a TRI could specifically serve to cater to the Vortex Method, but I am not yet sure how to define the exact goal for this indicator.

Thanks again for the links.