The Mathematics of Moving Averaging

Discussion in 'Trading' started by tradingjournals, Oct 24, 2013.

  1. Notice the icicles on the DOM.

    Also all the two pair analysis screens (OTR) are there.

    And tucked in the lower right is the Premium based Str/Squ invention.

    If you look at how the MACD and Stochs are synchronized (proper coefficients and appropriate signal generators) relative to all the othe leading indicators, then you casn see how following the two triads to make up an OOE works on two line indicators.

    All of this works very keenly on stocks.
     
    #21     Oct 28, 2013
  2. Yes... I also know the meaning of life. PM me for that....
     
    #22     Oct 28, 2013
  3. God forbid somebody should learn something!

    Anyhow, I hate moving averages and don't use them at all. Take the SMA; a change in the length by +-1 will change the included data at the left edge of the screen. That change has as much import as a change in the most recent data. People call that "lagging" and they speed it up by going to the EMA... that is kludgey enough to be rather offputting right from the start but then people backtest the idea that the EMA can be helpful and they find it's so close to random that it's not much use. Maestro has posted about "splines", some sort of mathy thingy that he swears by.. you might want to look that up... one poster said something about fibonacci weighting or something, might look at that too...
     
    #23     Oct 28, 2013
  4. bh_prop

    bh_prop

    Thank you for posting this attachment Jack. I know you are using TN nowadays. Do you still by chance use TS or at least have a version of it running at your office? I ask because I have attempted to create a channel drawing tool such as you posted but thus far have been unsuccessful.
     
    #24     Oct 28, 2013
  5. Paddler

    Paddler

     
    #25     Oct 28, 2013
  6. I think he was just doing me a favor. If you look at the prices in the picture, ES is in the 1300s.
     
    #26     Oct 28, 2013