|
Study on Study |
July 11 , 2007
16:30 Ensign Kimball: Ensign Windows has the ability to calculate study values from other studies (a Study on a Study).
16:31 Ensign Kimball: For example, a Moving Average can be calculated for a Parabolic Stop. Or, an RSI can be calculated from a Stochastic study.
16:31 Ensign Kimball: The ability to place studies on other studies is a powerful extension to Ensign Windows analysis tools. There are many combinations of placing studies on studies.
16:31 Ensign Kimball: This is how you do it.
16:32 Ensign Kimball: First....place a study on a chart.... I will start with a Simple Moving Average.
16:33 Ensign Kimball: In the chart above, you can see a moving average line on the chart. I want to place a 'Parabolic Stop' on the Moving Average values now (instead of the Chart bar values). To do this, I must now place a Parabolic Stop on the Chart.
16:34 Ensign Kimball: When first applied to the Chart, the Parabolic Stop uses the CHART BARS as the data source to calculate the study.
16:35 Ensign Kimball: To change the 'Data Point' (data source) for the study, open the Properties window for the Parabolic Stop.
16:36 Ensign Kimball: Note in the window above, that the Data Point has been changed to AVE. Click OK to view the chart again.
16:36 Ensign Kimball: The Parabolic Stop is now recalculated with the MOVING AVERAGE as the source for the Parabolic Stop study. The Parabolic Stop lines have adjusted and now correspond to the Average line.
16:37 Ensign Kimball: We have a STUDY that is based on another Study
16:37 Ensign Kimball: Lets do another example.
16:38 Ensign Kimball: This time lets do a STOCHASTIC on a Relative Strength Index (RSI) study
16:38 Ensign Kimball: First, we apply the RSI to the chart.
16:39 Ensign Kimball: Next, we add a Stochastic Study to the chart.
16:40 Ensign Kimball: We open the Properties window for the Stochastic study and make a few changes.
16:40 Ensign Kimball: 1) I changed the 'Location' of the Sub-window to window 2 (the same place as the RSI).
16:41 Ensign Kimball: 2) I changed the 'Data Point' to be RSI
16:41 Ensign Kimball: 3) I changed the COLOR box for the %D Line to be Violet instead of RED.
16:41 Ensign Kimball: The RSI line was already RED. It is easier to see the Stochastic lines if plotted in a unique color.
16:42 Ensign Kimball: Now the Stochastic and RSI are in the same sub-window. The stochastic is using the RSI values as the source for its calculations. Another Study on a Study !!!
16:43 Ensign Kimball: Ok. Lets do one more example. This time we will do a 3 deep Study on a Study on a Study.
16:43 Ensign Kimball: Lets start with a Volatility Stop. Then a Simple Average on the Volatility Stop. Then an RSI of the Simple Average.
16:44 Ensign Kimball: Here is the Volatility Stop
16:44 Ensign Kimball: Next the Moving Average Lines
16:45 Ensign Kimball: Then the RSI.
16:45 Ensign Kimball: Put these all on before changing the Properties.
16:46 Ensign Kimball: Next, I will change the Properties for the Moving Average to have a 'Data Point' from the Volatility Stop
16:49 Ensign Kimball: I have changed a couple of the Volatility Stop settings as well.
16:49 Ensign Kimball: 1) Unchecked the 'SHOW' box (so the Upper and Lower Lines do not plot)
16:49 Ensign Kimball: 2) Unchecked the 'Visible Trades' box.
16:50 Ensign Kimball: Now, just the Moving Average (of the Volatility Stop) is visible on the chart area.
16:50 Ensign Kimball: Lastly, open the Properties window for the RSI study.
16:51 Ensign Kimball: I have made a couple of changes to the RSI settings.
16:51 Ensign Kimball: 1) Changed the 'Data Point' to be the AVErage
16:51 Ensign Kimball: 2) Changed the 'Location' of the RSI study to be 'Chart'. This plots it on the chart instead of in a sub-window.
16:52 Ensign Kimball: The individual Parameter settings for the Volatility Stop, Moving Average, and RSI can all be adjusted to make the lines react quicker or slower. The chart above now shows the Moving Average of the Volatility Stop, along with an RSI of the Moving Average line.
16:53 Ensign Kimball: These examples demonstrate how to use Ensign's ability to create Studies on other Studies. Lots of different combinations of Studies can be done. You never know what you may discover, that helps take your Trading success to a higher level.
16:55 Ensign Kimball: Note: Do not remove the underlying studies from the chart while other studies are being calculated from their values. The subsequent studies would not calculate properly.
16:55 Max: Could you use Price Finder to determine where the red line will turn down?
16:57 Ensign Kimball: That is normally used to find where something will CROSS....like what Price would have to be reached in order for 2 Moving Averages to Cross. In reality, any downturn in the Green Line, will cause a small drop in the RSI line.