![]() ![]() ![]() I would think you would generally want the values to add up to unity (1 or 100%), but maybe this is not the case with a weighted alpha. It has a weighted percent change which is then converted to a percentile rank later.Ĥ0 * C / C63 + 20 * C / C126 + 20 * C / C189 + 20 * C / C252 - 100 Is it just a weighted percent change? If so, there have been formulas written for IBD Relative Strength. Others may apply a gradually declining weight to all price movements as they stretch further back in time. One version of weighted alpha might apply a weight of 1.5 to all activity within the past three months and a factor of 0.5 to all activity between nine and 12 months ago. I ran into a term/measurement I hadn't seen before called positive weighted alpha (that Zacks uses), and read the definition is: The exact formula for weighted alpha can be modified based on the preferences or objectives of the individual analyst. Welcome Guest, please sign in to participate in a discussion. Attention: Discussion forums are read-only for extended maintenance until further notice.
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