Plotting the alpha and beta indicator

Plotting the alpha and beta indicator
To plot Alpha and Beta in MetaStock follow the steps below. ** The custom indicator named Beta is necessary to plot Alpha.
In Windows versions of MetaStock,
To plot Alpha:
• Create custom formulas Alpha and Beta (see below for formula syntax).
• Open the desired security scheme.
• Drag the price plot of the index will be compared in the table of security and near the table index. ** Spread security table if necessary.
• Drag the custom indicator of the Alfa Quick List and drop the price plot of the index. ** The index plot will turn purple in color, when you plot on top of it.
** Note, this formula is set to calculate the Alfa over 21 periods. To change the time periods replace each instance of 21 in the formula with the desired number of changes, as well as periods of time periods in beta custom indicator.

Alpha:
(Sum (ROC (close, 1%), 21) - (Fml ("Beta") * Sum (ROC (INDICATOR, 1%), 21))) / 21
To plot Beta:
• Open the desired security scheme.
• Drag the price plot of the index your comparison in the table of safety.
• Drag the custom indicator from the Quick List and drop the price plot of the index.
Note, this formula is set to calculate beta over 21 periods. To change the time periods replace each instance of 21 in the formula with the desired number of times.}

Beta:
((21 * Sum (ROC (close, 1%) * Taiwan (INDICATOR, 1%), 21)) -
(Sum (ROC (close, 1%), 21) * Sum (ROC (INDICATOR, 1%), 21))) /
((21 * Sum (Pwr (ROC (INDICATOR, 1%), 2), 21)) - Pwr (Sum (ROC (INDICATOR, 1%), 21), 2))
** Beta is a measure of volatility of one security against another. This is usually used to measure the volatility of the stock against an index like the S & P 500th A value greater than one indicates the stock is more volatile than the index.