Look in that thread that Shaggsthestud referenced: http://groups.google.com/group/jbooktrader/browse_thread/thread/dc533e1d2566d1df#
No advance math knowledge is required. It's actually quite straightforward. Given a signal (such as a series of prices), the difference between the shorter-term EMA and the longer-term EMA approximates the first derivative of the price and represents the velocity. Now, if you take the resulting velocity signal and calculate difference between the shorter-term EMA and the longer-term EMA on *that* signal, it would be the second derivative of a price, which in the physical world is known as acceleration. You can probably sense that you don't have to stop there. What's the third derivative? It's called a "jerk". :-) On Thursday, December 23, 2010 9:08:49 AM UTC-5, new_trader wrote: > > > more practical solution is to compute the acceleration (i.e., the second > > derivative of the Tension). The peak is where acceleration is near 0. The > > > calculation would be an O(1) operation, as the only thing that would be > > involved is differencing the EMAs. > thanks for the reply! > any hint on how to do differencing the EMAs? > I am so sad that I am no math genius :-( > -- You received this message because you are subscribed to the Google Groups "JBookTrader" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/jbooktrader?hl=en.
