Why use PowerOfExp, NaturalLog for calculating Bar Size

pupu

Member
I have noticed some studies uses Power of e + Natural Log to compute bar height or volume size, and than sometimes make those computed numbers to work with standard deviation.

My question, is why use "Power of e + Natural Log"?

For example, for simply compute averaged bar height of previous 5 bars:
Code:
# define distance away from low/high to plot signal
def AvgBarHeight_LN = Power(Double.E, Average(Log(Max(high - low, TickSize())), 5));

Why bother use the above, instead of just simple average?

Code:
def AvgBarHeight = Average(Max(high - low, TickSize()), 5);

I have attached an example code below to show the difference in value computed:


Code:
# -------------------------------------------------

declare once_per_bar;
declare upper;

# define distance away from low/high to plot signal
def AvgBarHeight_LN = Power(Double.E, Average(Log(Max(high - low, TickSize())), 5));

def AvgBarHeight = Average(Max(high - low, TickSize()), 5);

plot graph_BarInfo_Up = AvgBarHeight_LN;
graph_BarInfo_Up.SetPaintingStrategy(PaintingStrategy.VALUES_ABOVE);

plot graph_BarInfo_Dn = AvgBarHeight;
graph_BarInfo_Dn.SetPaintingStrategy(PaintingStrategy.VALUES_BELOW);

# -------------------------------------------------

000.png
 

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