What's '' the intention when using indicators'' ? Can you clarify please? When I go to this place:http://papers.ssrn.com/sol3/papers.cfm?abstract_id=192848 and in the search button I type 'trading' , some 200 papers show up.. You will not surprise me, believe me .. I ran across a few / let me know if you want me to quote them/ where they CLEARLY speak about predictive power of indicators / or the lack of it/ or predictive power of price patterns / statistically speaking that is/ and they are far from being papers on astrology - it's scientific stuff basically .. so either you have sth to say or you belong in the 'ignore' area.. By the way, did you by any chance publish anything there? Maybe it's worth giving it a try since you seem to have plenty to offer in this field .. If not, there might be an astrological section somewhere.. where else could you belong then?? Regards.
Haha....yea I wouldn't say his website is much of a selling point. In regards to getting a boot leg well that's a matter of personal opinion ...If your wife likes the certainty that the Louis Vuitton she is carrying around is the authentic quality product that drew her to the brand in the first place, then she wants it bought from a reputable dealer. If she just wants it to look close enough and doesn't mind that it might not be real, then you might take the risk and buy it somewhere for 10 cents on the dollar. ...at the end of the day its a matter of personal decision but be forewarned ...your mileage may vary. And that just isn't something I personally want to bother with.
Clearly this comment is accurate. The job is to find trades that have equity at the moment you fire off the order because you know in taking that trade there is a positive expectation over a large sample. When indicators help you see or give you a heads up that price action MAY be setting up a certain way that clarity and/or heads up may have value. You would not expect the guy from the car wash to drive you home when he is done. Nor should you expect an indicator(s) to trigger your trade.
Here is an interesting link comparing various MAs including a new kid on the block precision lagless average. I haven't used this new average so I can't comment on how well it works or doesn't work. My personal favorite filter is T3. http://www.precisiontradingsystems.com/precision_lagless_average.htm
Great post. The name is misleading, it clearly isn't "lagless" but it is low-lag compared to conventional MAs. I like the guarantee of zero overshoot, a quality I consider to be very important myself.
OK, their comparison table doesn't make sense: Comparison table Speed Accuracy Smoothness ------------------- ------- ---------- -------------- Prec Lagless avg 96 98 96 Hull average 95 79 93 Weighted avg 78 100 91 Triangular avg 71 100 98 Exponential avg 65 100 99 What exactly do they mean by "speed", "accuracy" and "smoothness"? Speed, I can guess, is inversely related to lag but how are they measuring smoothness and accuracy?
I had to assume that speed meant speed of calculation.. That thing looks intriguing. These more sophisticated averages from Jurik and all are based on Digital Signal Processing. DSP has brought advances to the art of Radio, I have a Tecsun DSP radio and it's just marvelous..
You could measure accuracy by doing a statistical analysis of price vs the ma ... perhaps sqrt of average distance squared. Smoothness wouldn't be too hard either. If you look at them hull tends to overshoot a bit and jmas don't so it makes sense. The real question here is what do you use an average for? Depending on the answer then a non-ema may be the solution but its also possible that distance doesnt matter just how quickly the ma turns after price turns (probably the measure "speed" above).