Slope and how to interpret its value with different tick sizes

[Boonfly8]

Using the Slope() function in NT8, and trying to convert the value to degrees where one can easily interpret its meaning, I find it that the output is quite strange.

For example, if one wants to measure the slope of a SMA50 for the last 10bars, then it would be

Slope(SMA(50), 10, 0)

Converting the above value to degrees would be: Math.Atan(Slope(SMA(50), 10, 0)) / ((Math.PI / 180));

However, the output varies with different instruments where the FX Futures are the most non-intuitive to understand. The output for the above is like 0.00005, whereas one would logically expect something like, 25*, 45*, 75* (degree outputs)

Why is this? Do we have to divide the above formula by instrument tick size?

[koganam]

Using the Slope() function in NT8, and trying to convert the value to degrees where one can easily interpret its meaning, I find it that the output is quite strange.

For example, if one wants to measure the slope of a SMA50 for the last 10bars, then it would be

Slope(SMA(50), 10, 0)

Converting the above value to degrees would be: Math.Atan(Slope(SMA(50), 10, 0)) / ((Math.PI / 180));

However, the output varies with different instruments where the FX Futures are the most non-intuitive to understand. The output for the above is like 0.00005, whereas one would logically expect something like, 25*, 45*, 75* (degree outputs)

Why is this? Do we have to divide the above formula by instrument tick size?

Degrees are a dimensionless quantity: the Slope() of anything on the chart is dimensioned as a price. There is no arithmetic equivalence, which is what you have highlighted by your query. You could try normalizing the slope values by dividing it by some statistical price measure. The one most folks tend to think of is either the ATR or the average range. That gives you a dimensionless quantity that takes into account the travel of price for each particular instrument. You still will not have an arithmetic equivalence to degrees, but at least you will have a measure that takes into account the variance between equities.

ref: https://ninjatrader.com/support/foru...045#post653045
https://ninjatrader.com/support/foru...406#post686406
https://ninjatrader.com/support/forum/forum/ninjatrader-7/indicator-development-aa/73448-relative-smoothness-over-range?p=660026#post660026

[NinjaTrader_ChelseaB]

Hello,

koganam I wanted to say thank you as this needed to be answered by the community.

Boonfly8, koganam is correct. The value is created the same. You could use some sort of custom normalizing calculation if you wanted.