Thank you for purchasing an indicator or bundle from Kenzing®. This brief introduction contains instructions on how the indicator functions and how to adjust the input values that allow you to personalize the indicator according to your trading strategy. Information on how to access the indicator after purchase is not included in this document and can be found in the Read Me FAQ document.
Understanding the Simple Moving Mode (SMM)
By definition, the mode is the value within a set of data that occurs the most often. This makes it different to an average or median. In this context, the “Period” of the moving mode defines how many candlesticks should be used in the data set.
Once the set of data has been defined, the most commonly occurring price within that set must be determined. Unfortunately, the event of any high, low, or closing value of a time stamp being the same is infrequent as many securities trade to the precision of at least two decimal places. To overcome this, the middle value represents each candlestick in the data set and a user defined precision factor has been created.
Setting this value to zero will mean that each value within the period must be the same, while setting this value to “1” will allow for +/-0.5% between the values, making modal occurrences more common. If a mode does not occur within a set, the indicator will automatically plot the candle value.