Brian Bell’s normalization techniques are easily created in the NeuroShell Trader. Select ‘New Indicator …’ from the ‘Insert’ menu to create the following normalization indicators using the Indicator Wizard:
Oscillator:
Simple: Avg1 – Avg2 ( Close, 4, 8 )
Normalizing to Average Price:
Divide ( Oscillator, MovAvg ( Close, 8 ) )
Normalizing to Standard Deviation:
Divide ( Oscillator, StndDev ( Close, 8 ) )
Normalizing to Average True Range:
Divide ( Oscillator, AverageTrueRange ( Close, 8 ) )
Normalizing to Range (%R):
Williams %R ( Oscillator, Oscillator, Oscillator, 200 )
Users of NeuroShell Trader can go to the STOCKS & COMMODITIES section of the NeuroShell Trader free technical support Website to download an example Normalization Chart. When loaded, the chart will automatically create the AverageTrueRange Custom Indicator that was used in the formula above.
Additionally, users may find the normalization techniques useful when creating trading systems with the Trading Strategy Wizard or when predicting future price movements, future highs or future lows using the Prediction Wizard. Owners of the NeuroShell Trader Professional could then use the Genetic Optimizer to determine the optimal parameters for the normalization techniques.
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