The annualized number is the number of trading days in a year. This and the length might need adjusting for the extra bars that might be in or other markets. The number does not have to be a year. For example, it can be a month if you set the number to 20 or so trading days to find how much you would make in a month if price continues at its current pace, etc. This can also be used as an alternative to or .
Changed the value to show percentage.
This indicator is like rate of change but lags in order to give less weight to the outliers or the prices that don't fit the exponential regression line.
No verdadeiro espírito TradingView, o autor deste script o publicou com código aberto, para que os traders possam compreendê-lo e verificá-lo. Um brinde ao autor! Você pode usá-lo gratuitamente, mas a reutilização deste código em uma publicação é regida pelas Regras da Casa. Você pode favoritá-lo para utilizá-lo em um gráfico.
This indicator comes from Andreas Clenow's book Stocks on the Move. I converted what he had in his Excel picture and description of it into an indicator, he specifically uses the exp function on there for that step. I then concluded it to be most likely correct because it looks similar enough to rate of change. It's not really available anywhere to double check, but I think I got it right..
"A regression model will have unit changes between the x and y variables, where a single unit change in x will coincide with a constant change in y. Taking the log of one or both variables will effectively change the case from a unit change to a percent change."
Here it's also explained and done without it: https://teddykoker.com/2019/05/momentum-strategy-from-stocks-on-the-move-in-python/
The reason I asked in the first place is just that I'm using a python screener and I use the formula without the exp() (to have it simpler and I guess more accurate because of less calculations) so if you decide to change it the numbers will be more alike^^, but I guess it doesn't really matter that much.
Oh and btw thanks for writing this indicator. In any case it's nice to see the Clenow results in TradingView.