Modes 1 & 2
Mode 1 - We plot a moving average of the - OPEN, HIGH, LOW & LAST.
Mode 2 - Is the same as #1 above, but without Legs - (The Highs and Lows).
5 Mode Chart Types
Smooth Charts will give as much weight to the LAST price as you require to show the last and close, closest to actual last price as you wish and still keep the smoothness of the chart.
Note: Mode 4 and 5 above are the actual last price and these higher modes will be required. This is for modes 1, 2 & 3 charts, where the last price is the AVERAGE last price.
Let’s assume you have a 7 min chart with a 12 SMA value, and you put in 10 for the mode value.
The Smooth Chart will go back 12 bars and display the average OPEN, HIGH, LOW & LAST of these bars.
Any mode value past 5 will calculate the last price into the chart equation for the actual close price.
Meaning if you use mode 6, it will add one more current close value to the chart.
If you enter a 12 SMA value, then it would add one more close and average out 13 bars JUST for the close value.
Adding in the extra mode values, then divides up the balance of the total.
Let’s say there is an input for mode 10.
This input would take the average of all 12 bars, then add in “5” of the current bar’s last value to the SUM of the previous 12 SMA Input. Then divide the total by 17 (12+5 = 17).
This is the current bar’s weighted close that you will see on the chart.
It’s because mode 10 is a 5 count above 5.
This set up is an attractive way to get the look and feel of mode 1.
There is no limit to the higher modes above 5…you can go up to 20, 30, 100, etc.