Question about moving averages

Discussion in 'Technical Analysis' started by KGTrader4, Sep 5, 2022.

  1. KGTrader4

    KGTrader4

    actually, yeah, interesting topic. I’ve bookmarked the article and will read it in full later
     
    #71     Sep 7, 2022
  2. uhhh Yes. And at some sites it can move a bit even after the close. That’s why I don’t need to check often, but there are some days where the stock moves in one direction almost all day and I sometimes take a calculated risk.
     
    #72     Sep 7, 2022
  3. SunTrader

    SunTrader

    1) That is because data is crap (aka free) or software is.

    2) When that happens MA are (as is most cases) meaningless. Trend was underway and strengthened. What does a MA add to that, that isn't already obvious?
     
    #73     Sep 7, 2022
  4. easymon1

    easymon1

    HAMMER AT SUP 7985 soxl 5m msd, engulfing.png
     
    #74     Sep 7, 2022
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  5. easymon1

    easymon1

    KGT do you still have your "Question about moving averages"? If you have arrived at a conclusion that resolves said dilemma to your satisfaction, what it be?
     
    #75     Sep 7, 2022
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  6. panzerman

    panzerman

    The lookback period for a moving average does not hardly matter. The main issue is to reduce group delay (ie lag) as much as possible, and take what you get in terms of smoothness of the curve.

    Zero group delay is ideal, but only comes with noncausal filters. Kalman filtering is an interesting topic, but is only as good as the underlying physical model you use for price evolution.

    Kalman Filter Tutorial
    Trend-Following Filters – Part 5 - (alphaarchitect.com)
     
    #76     Sep 7, 2022
  7. KGTrader4

    KGTrader4

    Yeah, I’m going to stick with the daily Charts, it just makes more sense to me, because of my temperament. So that solves the problem of how to set the MA’s daily chart shows daily, weekly chart shows weekly.
     
    #77     Sep 7, 2022
  8. Overnight

    Overnight

    I know this is your pet name for me on this forum, as I am the only one you have used the nickname with. How did you ever get the sense that I sell dick pics for money? WTF!

    (And I bet you never thought I would see that, buried in your TLDR post. Dude, I read EVERYTHING, mostly.)
     
    #78     Sep 7, 2022
  9. 1. Perhaps. As a swing traitor I don’t need up to the minute data.

    2. I can’t divulge what you’re missing in a public forum. Sorry.
     
    #79     Sep 7, 2022
  10. In defense of MAs... learning how to incorporate them into rules-based strategies is a large part of how I became profitable. My subjective ability to determine the trend and trade with it wasn't good enough and a more objective method was required.

    It seems clear that some trend/momentum traders have learned to do this, though, without the MAs.

    I see the value in classical methods like requiring price to be above the 200 SMA and/or the 50 over the 200 or the 20 over the 50 over the 200 combo, etc., for long trades. However, I have gotten more consistent results when I focused on the slopes of intermediate period MAs in approx. the 30 to 80 period range.

    As examples of this idea, I took screenshots of ES charts for the last 6 trading days and combined them into two pictures. Will try to attach one here and one in the next post.

    EScharts 9-7 9-6 9-2-22-2.png
     
    #80     Sep 7, 2022
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