Bloomberg "trender" indicator

Hi All,

Does anybody have this bloomberg "trender" indicator & write an MT4 version for it?? I've google but can't find any version of this indicator for MT4 & the info is very limited as the follow link, any expert here can help??

http://www.thedisciplinedinvestor.co...d-the-trender/

http://www.wealth-lab.com/Community/...S6WS/ixdR4jlzu

hi

did you find the formula for this indicator? i too have seen it on bbg

thanks

The Fear and Greed Indicator : a new Weapon in my Arsenal ?

As it's probably not the most exciting week of the year in terms of trading, it may be the time to write a post about some TA (stands for Technical Analysis and not Tits and Ass as suggested Batman in our weekly discussions, anyway it's always time for the latter isn't it?). If you're crazy enough or have some too much time to waste to follow my blog (and if you do, thanks again!), you know how the ATR or Average True Range is important in my trading. The True Range is merely the difference between the high and the low, corrected with the opening gaps (if any, for instance for FX pairs, it's just high-low) and the ATR is the moving average of the True Range on the given period.

True Range = max(high, previous close)-min (low, previous close)

Basically I use the ATR to calibrate my stop losses, for instance I generally consider any move below 2 ATRs as noise and what I don't want is to be stopped by the noise. It's the worst thing : be right but stopped and lose money before this bloody price goes in your direction. More importantly, I like to trade so called "Volatility breaks", meaning I like to wait for a move of x ATRs in a direction before I put on a position in that very same direction. My intuition is market prices follow some laws of Physics (quite ironically because when I was a student I really hated Physics...) and their moves have some inertia particularly when they have some strength. It takes time to reverse a strong move. I look for such a strength in candlesticks analysis and technical indicators (RSI notably) but I've been looking for some measures of the inertia. A fellow trader of mine, further to our discussions about these concepts sent me a memo about an indicator developed by Bloomberg, "the Fear and Greed indicator" (nice name), that seems to fit the bill (the paper is enclosed below). The FG indicator works in a similar way as the MACD, it's the spread between 2 ATRs (a fast one and a slower one) calculated in a way that it oscillates on a zero base line. As a kind of prime derivative of the MACD, the FG could be considered to some extent as a measure of acceleration of the price. It could be the measure I've looking for and could be new weapon in my arsenal. I let you here, I've to investigate further and do some test, at least it will kill the current boredom...

Here's the "user's guide" of Bloomberg's FG indicator :
To understand the Fear and Greed indicator, we must first understand the concept of True Range and Average True Range. True Range looks at the relationship between the current bars high and low, and compares it to yesterdays close to identify the largest range. For example, if the current high is $12 and the low is $10 dollars, the range would be is $2. If yesterdays close is $9 then today’s true range is $3.

True Range is important because after the market closes and prior to the open there is a significant amount of macro and micro events that can shift the level of supply and demand for a security. These events determine where the price of the security will open that morning. True range is therefore adjusting for gaps between the close of the prior day and the current days open to determine what the “True Range” is. Average True Range is a simple or exponential moving average of the True Range values historically. The ATR study on can be found in your G and Launchpad charts and represent this concept.

http://4.bp.blogspot.com/_OkbqlfSoBJ...+Indicator.JPG

The Fear and Greed indicator is the spread of two weighted moving averages of the True Range. It is calculated in a way that it oscillates on a zero base line. The indicator provides signals in three ways.

1. A buy signal is generated when Fear (red) turns to Greed (green) and a sell signal is generated when Greed (green) turns to Fear (red)
2. Divergence - when price trends lower and fear reaches higher lows or when price trends higher and greed is at a lower high. These are signs of an exhausted trend.
3. When fear or greed spikes to extreme levels it is signaling the start of a top or bottom

The small “A” on the indicator is an alert level. In the settings of the indicator you have the ability to be alerted when the fear or greed exceeds a certain value. In the above, each A appears when it turns above or below the zero line.
The legend for the indicator displays “FG(5.00)” which represents the sensitivity factor. Depending on ones investment style, increasing or decreasing the value of this will speed up or slow down the rate of change of the Fear and Greed value. - Paul Ciana, CMT

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The formula for the Trender can be found in Bloomberg. It seems relatively straight forward. However, I am at a loss as to how to convert it to mt4. Would be most interested as well if anyone has been able to do this!

I tried Google but wasn't able to find it. However, attached is a ATR based trend indicator that plots a similar curve.

Well, I don't know whether the below info can it helps:

http://freepdfhosting.com/841de65991.pdf
http://www.scribd.com/doc/39942470/H...k-of-Bloomberg

All it says is "Trender uses Average True Range (ATR), exponential smoothing, and standard deviation as inputs." but it doesn't explain how.

Similarly, the PDF gives the inputs and outputs, but not the calculation.

I'm guessing, but I suspect that the indicator, and its construction, are proprietary to Bloomberg.

Hanover,

Attached file is from one of my friends that he extract from Bloomberg's help file, hope that you can go through & see whether it can provide u the detail to code the indicator out.

Thanks.

It looks like the first 3 paragraphs on page 1 give enough info to code the indy, but it's not necessarily going to be a trivial job. I'm very busy with this project at the moment.

Having looked at the plot that Trender generates, I don't see why it would necessarily be superior to the solution that I provided in post #5, Team Aphid's BAT (attached), or even something like Parabolic SAR (part of MT4 package). You can calibrate any of these indys to provide a line that follows price more, or less, tightly, at various points along a move. Any indicator of this kind will deliver profit in a trending market, and losses when prices move sideways.

If somebody can provide a compelling reason why Trender might outperform other trailing SAR type indys, then I'll revisit it when I have some time. Otherwise, I suspect it will become just another one of the thousands of indys that make a chart look pretty, but are eventually discarded.

Meantime, if anybody else wants to code it, then please feel welcome.

Hanover,

Thanks for your time for going through.

Rgds

Hi

Has anyone come up with a formula a trender indicator? If so is it possible o get a formula that I can then put into and try in excel ?

Thx