Kairi(String,Series,ElementValue,Series) Method

Calculates the Kairi Indicator measure as a percentage of the price, the divergence between the a moving average (generally the simple moving average) of the price and the price itself for each period for which there is sufficient historical values.

Syntax

Visual Basic
C#

'Declaration
 
Public Overloads Shared Function Kairi( _
   ByVal seriesName As String, _
   ByVal s As Series, _
   ByVal elementValue As ElementValue, _
   ByVal movingAverageSeries As Series _
) As Series

'Usage
 
Dim seriesName As String
Dim s As Series
Dim elementValue As ElementValue
Dim movingAverageSeries As Series
Dim value As Series
 
value = FinancialEngine.Kairi(seriesName, s, elementValue, movingAverageSeries)

public static Series Kairi( 
   string seriesName,
   Series s,
   ElementValue elementValue,
   Series movingAverageSeries
)

Parameters

seriesName: The name of the series which will be displayed on the chart, i.e. its label.
s: An series where the first term corresponds to the present price of the underlying asset for the most recent period, the second term corresponds to the present price of the underlying asset for the previous period and so on.
elementValue: Specifies the particular element value (for example High, Low, Close or Open of the financial time series) which will be considered within this indicator evaluation. In particular, if you wish to use the element value high then you should pass the parameter High. In a similarly fashion if you wish to use the low, close or open, then you should pass the parameter Low, Close, Open, respectively.
movingAverageSeries: An series where the first term corresponds to the most recent value of the moving average (generally the simple moving average) of the underlying asset, the second term to the previous value and so on.

Return Value

An series where the first term returns the Kairi indicator expressed as decimal format (i.e. 0.01 = 1 percent) for the most recent period, the second term returns the Kairi indicator for the previous period and so on.

Remarks

Remark: The Kairi Indicator is often used with conjunction with other moving averages within trading systems.

Evaluation

The formulae for the Kairi Indicator is as follows:

Kairi Indicator = (MA - price) / price

where MA is the moving average being considered and price is the present price of the underlying asset.

Application

The Kairi Indicator can be used in order to take advantage of an over extended trending market. For example, in an upwardly trending market when the price gets say more than 10% above the simple moving average, the asset could be sold and repurchased when the next hits the simple moving average again.

The Kairi Indicator could also be used in order to detect market tops and bottom. The idea being that market tops and bottoms often occur when the price is at an extreme value in relation to its moving average. That is, the Kairi Indicator should take an extreme value at market tops and bottoms.

Requirements

Target Platforms: Windows 7, Windows Vista SP1 or later, Windows XP SP3, Windows Server 2008 (Server Core not supported), Windows Server 2008 R2 (Server Core supported with SP1 or later), Windows Server 2003 SP2

Reference

FinancialEngine Class
FinancialEngine Members
Overload List