Any Math Whiz Here??
- Thread starter schizo
- Start date
The EMA gives more weight to the more recent bars than a simple MA with the idea that more recent price bars are more relevant than earlier ones. This gives a quicker reaction to price. If you are looking for a quicker crossover, use a lower EMA, eg 9 or 8, or weight the more recent bars even higher but understand there is a trade off of more false signals. You've been around this stuff to know that crossovers are not signals in themselves, you will chop yourself to death. If used, they have to be in conjunction of other momentum and price action dynamics to be effective. Whatever you do, ignore mindless fools like Bozo888.
The above chart shows that the crossover for the EMA line took place 2 bars prior to the SMA line. This got me thinking whether it's possible to hack the formula to make the lines respond faster, eg. faster crossover.
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Thanks but I kinda knew that already.
Changing the parameter wasn't what I was talking about. I was thinking more of an "adaptive" moving average based on different conditions.
dozu888,
I use an ema for intraday swing trading. Keep in mind what EMA does, it tracks the price over time.
The ema keeps my trade management logicical for exiting and keeps me trailing a winner.
No intention to insult your knowledge, It's more likely to overestimate than underestimate what people know around here.Thanks but I kinda knew that already.
Changing the parameter wasn't what I was talking about. I was thinking more of an "adaptive" moving average based on different conditions.
if it works for you that's good...
however... usually the situation is the ema has been no more or no less help for you than wearing white shoes during trading.
there are a lot of elements going into trading, but unless you really put everything thru scrutiny, it's hard to tell which elements are the difference makers..
When I trade discretionary, it's all pure PA. But I have yet to translate my trading system into a working strategy when it comes to automated trading. Even a simple concept as a trendline gets too convoluted. Hence, it's much simpler to devise a system based on indicators.