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difference between 2 similar scanning criteria

isabelds
isabelds ✭
in Using Technical Analysis
Hello,

can someone please explain what the differences are between these two scanning criteria. I understand the criteria and results I get with the first set, but am not understanding the results returned by the "max" function in the second one. Thank you!!

1. [weekly close > 1 week ago upper price chan(26)]
2. [weekly close > 1 week ago max(26,high)]

Comments

  • markd
    markd mod
    The series of prices used in max( ) and Upper Price Chan( ) are not actually identical.

    The price channel is actually offset back one day, so it does not include the most recent bar.

    So, price channel looks back one more bar than max( ), and price channel does not include the last bar in max( ).

    Here's a bit from the Chart school explanation of the Price Channel overlay:

    The Price Channel formula does not include the most recent period. Price Channels are based on prices prior to the current period. A 20-day Price Channel for October 21 would be based on the 20-day high and 20-day low ending the day before, October 20. A channel break would not be possible if the most recent period was used.
  • isabelds
    isabelds ✭
    Thank you for that info. Good to know about the price channel calculation, I better read up on it! Thanks again.

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