Lets discuss techniques for smoothing MAs

I

IronFist

Say you've got a moving average that's so fast it melts your face, but it's not the smoothest MA in the world?

How do you smooth it?

Here's my super fast MA after I smoothed it, but it could be smoother. It's the light blue one in this pic. The pink one is a 5 period EMA (OHLC/4), for reference.

<img src=http://elitetrader.com/vb/attachment.php?s=&postid=2091334 width=800>
 

Attachments

Quote from IronFist:

Say you've got a moving average that's so fast it melts your face, but it's not the smoothest MA in the world?

How do you smooth it?

Here's my super fast MA after I smoothed it, but it could be smoother. It's the light blue one in this pic. The pink one is a 5 period EMA (OHLC/4), for reference.
More...
Here's what I would do.

Get rid of the moving averge and then take a look at a candlestick for "x" period of time in both it's regular candlestick formation and in its heikin-ashi style formation as well.

What do you see?
 
Quote from MandelbrotSet:

Here's what I would do.

Get rid of the moving averge and then take a look at a candlestick for "x" period of time in both it's regular candlestick formation and in its heikin-ashi style formation as well.

What do you see?
More...

Heikin Ashi is cool BUT misleading because you're not looking at price.

I remember the first time I loaded HA candles on accident... I was like "OMG HOLY GRAIL!" :D
 
Read up on HMA. It corrects much quicker than EMA and esp. SMA's.

Disclaimer: I don't use MA's anymore I believe them to be lagging just like indicators. If they work for you great.
 
Quote from IronFist:

Say you've got a moving average that's so fast it melts your face, but it's not the smoothest MA in the world?

How do you smooth it?

Here's my super fast MA after I smoothed it, but it could be smoother. It's the light blue one in this pic. The pink one is a 5 period EMA (OHLC/4), for reference.
More...
My takes:

- You didn't name the argument for your MA. Is it also ohlc/4?

- The two MAs seem to peak and trough at the same speed, but your MA has less attenuation, which is a plus as a rule.

- Avoid the HMA. It overshoots. The last thing you want in a smoother is overshooting.

- Think about adaptive smoothing, if you're not doing that already.
 
Quote from IronFist:

Say you've got a moving average that's so fast it melts your face, but it's not the smoothest MA in the world?

How do you smooth it?

Here's my super fast MA after I smoothed it, but it could be smoother. It's the light blue one in this pic. The pink one is a 5 period EMA (OHLC/4), for reference.
More...

I will save you the trouble.

Moving averages provide NO edge.
 
how about a weighted moving avereage, it is standard, and free :-)

you can change weight parameters to get a better weighting for a specific market

piazzi
 
Quote from Epiphany:

I will save you the trouble.

Moving averages provide NO edge.
More...

and I agree with that, they are, like other technical indicators, tools to employ to study a market

piazzi
 
You must log in or register to reply here.
Back
Top