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MetaStock
Indicator - Market
Thrust Oscillator
rev. 01/06/97
The following
formulas were taken from the article, "The
Cumulative Market Thrust Line", by Tushar
Chande, in the December 1993 issue of Technical
Analysis of Stocks & Commodities.
Taken from Stocks
& Commodities, V. 11:12 (506-511): The
Cumulative Market Thrust Line by Tushar S. Chande,
PhD.
"STOCKS &
COMMODITIES contributor Tushar Chande originally
introduced the concept of market thrust in August
1992 as a method by which to overcome the
limitations of the Arms index. Since then,
variations have been suggested on the theme and
here, Chande offers the variation of a cumulative
market thrust line, in which market thrust is
cumulated to calculate a volumetric
advance-decline line by including the effect of up
and down volume."
Composite
securities are created from 4 separate files.
Advances, Declines, Upvolume, Downvolume. The
article side bar presupposes the user has these
four files.
Reuters Trend Data
(RTD) supplies this data in two files. The tickers
are X.NYSE-A (Advances, number and volume) and
X.NYSE-D (Declines, number and volume). To use
these two files, you must utilize two different
custom formulas and the indicator buffer in
MetaStock™ for DOS.
CompuServe
supplies this data in 4 files. The tickers are
NYSEI (Advances); NYSEJ (declines); NYUP (Advance
volume) and NYDN (decline volume).
Dial/Data supplies
this data in two files. Advances, number and
volume and Declines, number and volume. The
tickers are @*NAZ_K and @*NDZ_K.
For the Windows versions of MetaStock:
For RTD and
Dial Data:
#1:
C * V
#2: 100 * ( ( P - ( C * V ) ) / ( ( P +
( C * V ) ) ) ) |
To plot it:
- Load advances,
plot formula #1.
- Load declines.
- Drag the
plotted formula #1 from the advances in to the
declines chart.
- Plot the thrust
indicator formula (#2) directly on top of the
plotted formula #1 in the declines chart.
For CompuServe data:
#1:
C
#2: 100 * ( ( P - C ) / ( ( P + C ) ) ) |
To plot it:
- Create a
composite of the Advances * Up Volume
- Create a
composite if the Declines * Down Volume
- Load advances
composite , plot formula #1.
- Load declines
composite.
- Drag the
plotted formula #1 from the advances in to the
declines chart.
- Plot the thrust
indicator formula (#2) directly on top of the
plotted formula #1 in the declines chart.
** To create the
cumulative thrust oscillator line perform the same
steps as above except change formula #2 to:
Cum(100*(P-C)/(P+C))
for CompuServe data
Cum(100*(P-(C*V))/(P+(C*V))) for RTD and Dial
Data
** To create the
cumulative market thrust line, the formula is:
Cum(P-C)
for CompuServe data
Cum(P-(C*V)) for RTD and Dial Data
You now have the thrust
indicator plotted exactly as the article discusses. |
