You may want to study Kalman filters. Instead of doing all the matrix math, just search John Ehlers and "Optimal Tracking Filters."
%% Its not rocket science; but i may trade smaller when i see wild swings or exspect wild swings like UPRO in SEPT....................................................................................I leave the moving averages the same/50,200,some 55\...... period
Price is a VERY POWERFUL indicator, (of future price). Price Movement is a VERY POWERFUL indicator, (of future price). Seriously, how many times can you take derivatives of current price and previous price and gain any insight before it is an exercise in "digital alchemy"?
%%; I use paper charts more than digital/computer charts/both are fine. But NOT much tick charts\ cup with handle,they look fine in hindsight or in a book; i prefer monthly\ 4 hour charts............................................................. Adjusting charts may be fine for back test; most would consider that cheating/bad business in the middle of a trade /if its trying to justify a position or loss.
Hup n Handle, requiring No Moving Average at all, lol looks even better On Your Charts than any dusty old book, traders. https://www.elitetrader.com/et/threads/cup-and-handle-on-bac.356343/#post-5336128 Easily spotted in the wild on Your Charts, they happen directly across from a prior swing. Hold off, wait for the pullback, likely as not a hammer at that support horizontal or an engulfing candle, etc. If you like it, Enter, Measure that puppy out, stop and target in your bracket trader, go fishin. Next, you'll want to recognize them inverted for rides to the downside. Just a matter of accepting one when you see it. (Sounds like something Dpak Chopra would say. lol.) https://www.elitetrader.com/et/threads/cup-and-handle-on-bac.356343/page-2#post-5337501
I did the research again https://qoppac.blogspot.com/2021/03/does-it-make-sense-to-change-your.html TLDR; there is some evidence that faster rules do not work as well when volatility is higher. But more striking is the fact that momentum generally does badly as vol rises; something I hadn't expected to see. GAT
%% The best or one of the best things about an IBD cup with handle= early buy signal Also strange/ about the time IBD founder stepped down/ they started thier ''swingtrader system'' for fee of course/LOL .Then they went down to 21 day or 20 day moving average/LOL NOT based on vol or volume even though he always puts a larger ma on volume. BIG change they also\\ stopped the political cartoons + politics page,[EDIT=NOT an insult against Dr Suess or Asians + i like rice also/LOL\yellow marks + rice.]
%%%%% LOL ? %%%%%%%% https://www.investors.com/how-to-in...sics-how-to-analyze-a-stocks-cup-with-handle/ THX
Murray, Good stuff. You are cordially invited to the cup n handle thread to continue the comments and healthy discussion of cup n handle with opinions and examples. https://www.elitetrader.com/et/threads/cup-and-handle-on-bac.356343/page-2#post-5337814 "is there a relationship between volatility and moving average?" Moving Average - Adaptive This study calculates and displays an Adaptive Moving Average of the data specified by the Input Data Input. This moving average was developed by Perry Kaufman. Reference: Stocks & Commodities V13:6: (267): Sidebar: Adaptive Moving Average. https://www.sierrachart.com/index.p...ence.php&ID=93&Name=Moving_Average_-_Adaptive