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Levine's Winmidas Method

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  • Dusant
    Levine s method is simple. Anchor a moving average from a significant top and bottom, factoring in the volume. Create a hierarchy of such supports/resistances.
    Message 1 of 2 , Aug 23, 2002
      Levine's method is simple. Anchor a moving average from a significant top and bottom, factoring in the volume. Create a hierarchy of such supports/resistances. Use other indicators to arrive at a conclusion as to whether the scrip is anticipated to receive resistance or support at the moving average.
      The steps suggested by Levine were to use the mean of the day (i.e. (H+L)/2)) but somehow, I find "better" results with (H+L+C)/3.
      Whenever I refer to price, I now mean the close weighted average.
      It becomes a little complicated from here on.
      For every tick passed, we have to cumulate the (price x volume), and add the particular day's price x volume. From this we have to deduct the start date's price x volume. This figure has then to be divided by the difference of the cumulative volume from today's cumulative volume and the starting date's cumulative volume.
      Trying to make things a little simpler.
      Let's assume that the anchor tick is "a". Each subsequent tick is "b".
      Mathematically, it can be represented by this equation.
       
      S/R (a,b) =
      (cumulative of (Pr x Vol)(a) - cumulative of (Pr x Vol)(b)) /
      (cumulative(Vol)(a) - cumulative(Vol)(b))
       
      where
      Pr = (H+L+C)/3
      Vol = Volume
      a = Launch Tick
      b = Subsequent Tick
       
      in metastock I have written this formula.
       

      {Get Date of High or Low Average Price}
      day1:= Input("Enter Date - mmddyy",010100,123199,010101);
      m1:= Int(day1/10000);
      d1:= Int(day1/100) - (m1*100) ;
      y1:= If(Mod(day1,100)>30, 1900+Mod(day1,100), 2000+Mod(day1,100));
       
      {Take the Low Price on anchor date}
      VL1:= ValueWhen( 1, Month() = m1 AND DayOfMonth() = d1 AND Year() = y1, L);
       
      {Take the elapsed ticks}
      LB1:= BarsSince(L=VL1);
       
      {The Operative Formula}
      Cum( If(Cum(1) < lb1,  0,  Typical()*V)) / Cum(If(Cum(1), =, 1, 1, If(Cum(1) < lb1, 0, V)));

      In Windows on Wall Street, the custom indicator will be:
      cum((h+l+c)/3*v*if(cum(1)>days,1,0))/cum(v*if(cum(1)>days,1,0))
       
      Hope this helps in your quest to understand Levine's Winmidas. Also hope I have not confused you further.
       
      Dusant
    • vinst1
      Thanks Dusant , I ll give it a try. vin ... significant top and bottom, factoring in the volume. Create a hierarchy of such supports/resistances. Use other
      Message 2 of 2 , Aug 26, 2002
        Thanks Dusant ,
        I'll give it a try.

        vin

        --- In technicalanalysismethods@y..., "Dusant" <cooldush@h...> wrote:
        > Levine's method is simple. Anchor a moving average from a
        significant top and bottom, factoring in the volume. Create a
        hierarchy of such supports/resistances. Use other indicators to
        arrive at a conclusion as to whether the scrip is anticipated to
        receive resistance or support at the moving average.
        > The steps suggested by Levine were to use the mean of the day (i.e.
        (H+L)/2)) but somehow, I find "better" results with (H+L+C)/3.
        > Whenever I refer to price, I now mean the close weighted average.
        > It becomes a little complicated from here on.
        > For every tick passed, we have to cumulate the (price x volume),
        and add the particular day's price x volume. From this we have to
        deduct the start date's price x volume. This figure has then to be
        divided by the difference of the cumulative volume from today's
        cumulative volume and the starting date's cumulative volume.
        > Trying to make things a little simpler.
        > Let's assume that the anchor tick is "a". Each subsequent tick
        is "b".
        > Mathematically, it can be represented by this equation.
        >
        > S/R (a,b) =
        > (cumulative of (Pr x Vol)(a) - cumulative of (Pr x Vol)(b)) /
        > (cumulative(Vol)(a) - cumulative(Vol)(b))
        >
        > where
        > Pr = (H+L+C)/3
        > Vol = Volume
        > a = Launch Tick
        > b = Subsequent Tick
        >
        > in metastock I have written this formula.
        >
        >
        > --------------------------------------------------------------------
        ------------
        >
        > {Get Date of High or Low Average Price}
        > day1:= Input("Enter Date - mmddyy",010100,123199,010101);
        > m1:= Int(day1/10000);
        > d1:= Int(day1/100) - (m1*100) ;
        > y1:= If(Mod(day1,100)>30, 1900+Mod(day1,100), 2000+Mod(day1,100));
        >
        > {Take the Low Price on anchor date}
        > VL1:= ValueWhen( 1, Month() = m1 AND DayOfMonth() = d1 AND Year() =
        y1, L);
        >
        > {Take the elapsed ticks}
        > LB1:= BarsSince(L=VL1);
        >
        > {The Operative Formula}
        > Cum( If(Cum(1) < lb1, 0, Typical()*V)) / Cum(If(Cum(1), =, 1, 1,
        If(Cum(1) < lb1, 0, V)));
        >
        > --------------------------------------------------------------------
        ------------
        >
        > In Windows on Wall Street, the custom indicator will be:
        > cum((h+l+c)/3*v*if(cum(1)>days,1,0))/cum(v*if(cum(1)>days,1,0))
        >
        > Hope this helps in your quest to understand Levine's Winmidas. Also
        hope I have not confused you further.
        >
        > Dusant
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