@Laissez Faire
It just occurred to me that I should plot my personal MAs and standard MAs on the same chart for comparison. Having done so, the difference doesn’t look all that dramatic to me, but when it comes to interpreting what a chart is communicating, I find that viewing lines that appear even a little less “herky-jerky” makes a big difference for me personally. This is especially true given that I use several trendlines on my charts—not just the two that you see plotted here (neither of which are my true “instantaneous” trend lines, which I mainly use on higher time-frame charts).
I just took a look at my "instantaneous" trend lines on a one-hour chart, and there is not necessarily a big difference there either. But there are individual moves made by a given candlestick here and there that are missed by a standard moving average. And whereas a 2-period MA might capture this aspect of price action, and a 3-period MA might capture that aspect of price action, I need a moving average that will reflect all aspects, even though they might come into play in only certain situations.
So, the subtle differences make a big difference to my trading. (Accuracy and precision are key to my decision-making process.)
It just occurred to me that I should plot my personal MAs and standard MAs on the same chart for comparison. Having done so, the difference doesn’t look all that dramatic to me, but when it comes to interpreting what a chart is communicating, I find that viewing lines that appear even a little less “herky-jerky” makes a big difference for me personally. This is especially true given that I use several trendlines on my charts—not just the two that you see plotted here (neither of which are my true “instantaneous” trend lines, which I mainly use on higher time-frame charts).
I just took a look at my "instantaneous" trend lines on a one-hour chart, and there is not necessarily a big difference there either. But there are individual moves made by a given candlestick here and there that are missed by a standard moving average. And whereas a 2-period MA might capture this aspect of price action, and a 3-period MA might capture that aspect of price action, I need a moving average that will reflect all aspects, even though they might come into play in only certain situations.
So, the subtle differences make a big difference to my trading. (Accuracy and precision are key to my decision-making process.)
Last edited:
?
?