John Ehler has an article in this months stocks amd commodities magazine. But really, I fail to see what mirroring the Markets moves using an SMA can generate in terms of profitable trades... most of these guys articles conveniently gloss over this issue.
If you're talking about the zero-lag ema article with Ric Way, the online excerpt is typically devoid of details so maybe you can share the details with us so we can evaluate what the pros and cons of Ehlers' and Way's approach is. Most "zero-lag" methods that are public domain involve some sort of extrapolation to compensate for the lag. Ehlers is usually heavy on electronic-filtering approaches which rely on spectral analysis and frankly I have my doubts about the applicability of spectral analysis to financial series data, but I'm always open to new approaches if they have merit.
The only fact demonstrated is it doesn't replicate a specific input pattern that never actually occurs in actual markets. Not so fast, cowboy, you're still on First.
Anything involving an average has, by definition, lag. You cannot compensate for lag unless you know what is coming. If you know what is coming, you have no need to screw around with any MAs. If you don't know what is coming, all you are doing is guessing, and will constantly be creating bad signals. As an example of this, there is a class of input signals for which the JMA can be made to oscillate completely out of phase.
As may have been implied, no one here has actually made it to first. Three balls in the count does not get you to first. Also, lets consider the strikes that have been thrown here. There is a typo in the code stuff. Call that a balk and let it go at that. Here are some points that may get some of you to consider getting out of triple A type baseball. It is not AFTER the non cross over that is important. Here, you have to get past dealing in crossovers in the first place. The whole of the matter, lacks, as stated, a good metric for evaluation. Thinking about it is insufficient. My viewpoint is selective; my vantage point is having made the selection and corrected the typo and dumping the comparision of two triple A solutions. Harmonics ONLY get significant when you are trading a multiple of the market's capacity. How can the designers and their critiques (words of the critics) move to the correct portion of the non stationarity opportunity? Use the new metric in the first place. How? Not by using a faulty measure of the market. By my count, and especially in a two line construct, there are 10 to 12 leading indicators of what is currently on the table. Smoothing? Don't be silly. Time smoothing DOES NOT DETERMINE THE PACE OF EVENTS. The PACE of events determines when to NOT smooth to stretch out the precision of the decision making opportunity. Get real guys.
Moving averages...filters...smoothing...lag...Kalman filter...adaptive... do you people live in dark ages? The only sound indicator of price is price itself (often with volume). Anything else is like astrology and you sound here like older fat and ugly ladies that try to see who they will meet by looking at the planets.
so...let me see if I get this right... One can visualize price action with a slow moving average and then let the faster jurik calculation (which is bad code posted here) signal a trade...but why did it crossover?...I gotta understand that... ElectricSavant
Does or does not the HMA overshoot? If the answer is yes (and there's no reason to believe otherwise), that alone makes it an inferior smoother, regardless of the specific input pattern that is being smoothed. The JMA only overshoots when you fiddle around with the PHASE parameter, which is something I would never do. In my own ama, there is no PHASE parameter and there is no overshoot, ever.