NOTE: In NeuroShell Trader, open the chart named “Example 3 – Multiple Chart Pages and Compound Indicators” which is the basis for following example:
In this example, we demonstrate that multiple issues can be loaded into a chart, and the construction of compound indicators (indicators built from other indicators).
First notice that we loaded three stocks at once into the chart. You can switch back and forth between them using the symbol and name dropdown boxes on the top of the chart.
The indicator we will build is Wilder’s True Range indicator whose definition is:
The maximum of the following three values:
1. The absolute value of the spread between the high and low
2. The absolute value of the spread between the high and yesterday’s close
3. The absolute value of the spread between the low and yesterday’s close
There is a spread indicator we could use in the indicator category called Time Series, but since the spread is just a subtraction of two values, we elected to use the Subtract indicator in the Arithmetic category. The Absolute value is in there too.
First we build indicators for each of the values above by selecting the Absolute value indicator, then for the operand parameter of the Absolute value, we re-entered the Indicator Wizard and selected subtract, then for each operand of subtract, we chose either high, low , or yesterday’s close. Yesterday’s close is itself an indicator, namely the one day lag of the close (lag is found in the Basic category).
Then we hid those three indicators, but you can unhide them and examine them by double clicking on their legends. (You could double click on the data values themselves, but it is more difficult to select the data values with the mouse. You cannot double click on the small color rectangles beside the legends.)
With the three value indicators built, it was a simple matter to insert the Max3 indicator from the Arithmetic category, and select each of the three values as parameters of Max3. The final step was to rename the resultant indicator as “True Range”.