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Greatest Swing Value
This calculates and displays the indicators for the Greatest Swing Value, a concept developed by Larry Williams in his book Long-Term Secrets to Short-Term Trading.
Let Open, High, Low, and Close Prices at Index \(t\) be denoted as \(O_t\), \(H_t\), \(L_t\), and \(C_t\), respectively. We denote the Buy Swing and Sell Swing at Index \(t\) as \(BS_t\) and \(SS_t\), respectively, and we compute them for \(t \geq 0\) as follows.
\(\displaystyle{BS_t = \left\{ \begin{matrix} H_t - O_t & C_t < O_t \\ 0 & C_t \geq O_t \end{matrix}\right .}\)\(\displaystyle{SS_t = \left\{ \begin{matrix} O_t - L_t & C_t > O_t \\ 0 & C_t \leq O_t \end{matrix}\right .}\)
Let the Length Input be denoted as \(n\). We denote the averages of the Buy Swing and Sell Swing as \(\overline{BS}_t(n)\) and \(\overline{SS}_t(n)\), respectively, and we compute them for \(t \geq n - 1\) in terms of a Simple Moving Average - Skip Zeros as follows.
\(\overline{BS}_t(n) = SZMA_t(BS,n)\)\(\overline{SS}_t(n) = SZMA_t(SS,n)\)
Let the Multiplier Input be denoted as \(v\). The two indicators of the Greatest Swing Value are the Buy Price and Sell Price, denoted respectively as \(B_t(n,v)\) and \(S_t(n,v)\). We compute them for \(t \geq n - 1\) as follows.
\(B_t(n,v) = O_t + v\cdot\overline{BS}_{t - 1}(n)\)\(S_t(n,v) = O_t - v\cdot\overline{SS}_{t - 1}(n)\)
It is the subgraphs of the Buy and Sell Prices that are displayed in this study.
Inputs
Spreadsheet
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*Last modified Monday, 26th September, 2022.