As you say, catching a trend is easy with an MA. What I have experienced is that the whipsaw periods eat up all the profits obtained during the...
If folks here insist on trend following with MAs, look at John Ehlers' Optimal Tracking Filter and Zero Lag MA.
Study up on topics such as oversampling and Nyquist sampling criteria.
Price is highly fractal in nature. 1 day, 1 hour, 1 minute, 1 millisecond. Of course there is a bottom limit given the speed of light and how fast...
Let me break it down for you. An SMA is a finite impulse response (FIR) lowpass digital filter. The group delay (ie lag) for an FIR filter is...
The simple model that I like is that price is analogous to pink noise, until you get near the Nyquist frequency. Because financial data is sampled...
Yes, timeless advice, but I need each of these precisely and mathematically defined. That way I can apply some data science and try to find...
Yes, one time frame is as good as another. It's all your personal preference as to how fast you want the action to be. When trading moving...
Look up the work of John Ehlers if you want to learn more about moving averages (lowpass digital filters.) Financial data is fractal in nature, so...
Two-pole highpass filter. Look it up, no time to explain.
Imagine manually scanning all the charts in the SP100 every day looking for one of these patterns, or conversely watching a handful of stocks for...
Price is random pink noise with stochastic amounts of skew and kurtosis. However, even that model is too simplistic. So, to somewhat answer your...
The thing is, these charts are all pattern recognition. Patterns are fine, but you have to be able to to define the patterns precisely enough to...
Read his latest interview in S&C. https://www.mesasoftware.com/TechnicalArticles.htm He dismisses cycle measurement for market data. Look into...
What all this says is have a well diversified portfolio and a buy and hold strategy. Not what people want to see in a trading forum. It seems...
Trading cycles has an appeal to me, but I have never been able to get them to work sufficiently well to have a positive expectancy. However,...
The man for cycles analysis in finance John Ehlers https://www.mesasoftware.com/TechnicalArticles.htm
The calculation of risk/reward and probabilities when talking about the underlying instrument is always going to have huge error margins. Using...
Since you brought up the Fourier Transform: [MEDIA] What does option pricing have to do with converting a periodic function in the time domain...
See what you all can do with this moving average: A one-pole infinite impulse response (IIR) filter, otherwise known as an exponential moving...
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