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Investors Preference Indicator
MetaStock Trading System
This indicator was discussed in the December 1997 Technical
Analysis of Stocks & Commodities magazine, page 19. The article
was written by Cyril V. Smith Jr.
"This indicator, a long - term stock market investment tool,
compares the performance of the S&P 500 to the New York Stock
Exchange index to measure sentiment. The theory is that investors
have a preference for certain types of investments, blue chips
versus mid-cap, during phases of a bull market."
The theory is that investors have a preference for certain types of
investments, blue chips versus mid-cap, during phases of a bull
market."
| Formula: Investor
Preference Index |
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| (Sum(Mov(ROC(Log(C),24,%)-ROC(Log(P),24,%),15,S)-Mov(ROC(Log(C),24,%)-ROC(Log(P),24,%),38,S),54)+1)*100 |
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To plot this in MetaStock for Windows, follow these instructions.
When complete, if you save this as a chart, you will simply need to
load the chart and it will recalculate using the newest data.
- Open a chart of the S&P 500
- Open a chart of the New York Stock Exchange index
- Drag the S&P 500 price plot into the NYSE chart
- Drop the indicator listed below on the plot of the S&P 500.
The plot will turn a different colour when you are pointing at it
The resultant plot is the Investor Preference Index.
| System Test |
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Enter Long
C=HHV(C,26) |
Close Long
Fml("Investor Preference Index")<97.6 AND ROC(Fml("Investor
Preference Index"),2,$)<=(-.04) |
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