SMA is my favorite

Discussion in 'Technical Analysis' started by eleanorK80, Jul 20, 2023.

  1. eleanorK80

    eleanorK80

    SMA is my favorite one due to its simplicity, trend identification capabilities, smoothing effect, support/resistance levels, and widespread usage.
    How has it helped you in making informed trading decisions?
     
    murray t turtle and comagnum like this.
  2. Sekiyo

    Sekiyo

    BDSM is my favorite

    Simple, Dominant side identification, Stress Relief effect, Pain/Pleasure levels & Widespread usage
     
    Last edited: Jul 20, 2023
  3. maxinger

    maxinger

    The naked chart (except for the candlesticks) is my favorite
    due to its simplicity, trend identification capabilities, smoothing effect, and widespread usage.
     
    beginner66 likes this.
  4. M.W.

    M.W.

    You are such a sweetheart and cutie. Yet so naive.

     
  5. maxinger

    maxinger


    huh?

    By default, if I see an attractive female avatar, I'd assume the writer is a male.

    Millions of males in this world have used such tactics to con other gullible foolish males.

    PS: You
    very very very very very very
    very very very very very very
    very very very very very very
    very very very very very very
    very very very very very very
    very very very very very very
    rarely see a hideous female avatar.




    PS: It is
    very very very very very very
    very very very very very very
    very very very very very very
    very very very very very very
    very very very very very very
    very very very very very very
    common to see an attractive female avatar.
     
    Last edited: Jul 20, 2023
    Axon and comagnum like this.
  6. panzerman

    panzerman

    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 (n-1)/2 where n = length in days of your calculation window. Lag is the reason why moving averages don't work.

    Speaking of windows, an SMA is a boxcar window. A smoother curve can be had, for the same lag, by changing the frequency response to a Gaussian window.

    Ex: 5 day SMA coefficients [1,1,1,1,1] versus Gaussian [1,2,3,2,1] divided by 9 of course.
     
    M.W. likes this.
  7. SunTrader

    SunTrader

    The optimum moving average of any kind uses a length of .............................. 1.
     
  8. Bad_Badness

    Bad_Badness

    or < 1
     
  9. SunTrader

    SunTrader

    < 1 is < price itself. o_O

    How's that?
     
  10. panzerman

    panzerman

    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 a processor can process data.
     
    #10     Jul 20, 2023
    M.W. likes this.