|
MetaStock
trading System - Investors
Preference Indicator
rev. 1/13/98
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."
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
color when you are pointing at it.
- The resultant
plot is the Investor Preference Index.
Formula: Investor Preference Index:
| (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 |
System test:
| Enter
Long
C=HHV(C,26)
Close
Long
Fml("Investor
Preference Index")<97.6 AND
ROC(Fml("Investor Preference
Index"),2,$)<=(-.04)
|
|
