Filters.PriceAction Method

Evaluates the Price Action Indicator (PAIN) of an asset for a given trading period as detailed within "Getting Better Directions" by Michael B.

public double PriceAction(
   double high,
   double low,
   double open,
   double close
);

Parameters

high: The traded high of the asset on the trading period under consideration.
low: The traded low of the asset on the trading period under consideration.
open: The traded open of the asset on the trading period under consideration.
close: The traded close of the asset on the trading period under consideration.

Return Value

Double value of the Price Action indicator for the period considered.

Remarks

Geraty, Futures magazine, Aug 1997.

Evaluation

The PAIN indicator is evaluated by the following formula:

PAIN = ( (close - open) + (close - high) + (close - low) ) / 2

where:

(close - open) - gives the Intra-Day Momentum
(close - low) - gives the Late Selling Pressure (LSP)
(close - high) - gives the Late Buying Pressure (LBP)

where close is the period's closing price, open is the period's opening price, high is the highest traded price during the period and low is the lowest traded price during the period considered.

Remark: The PAIN indicator is consistent with the interpretation of Japanese candlestick patterns.

Exceptions