macd indictor lags, is there software that doesnt

I was a few glasses of red wine deep when I posted, probably didn't word it as well as I would have liked. But we are on the same wavelength at least.

Quote from MandelbrotSet:

I think it's such a great post because I was saying something similar over here:

Making Money of of Randomness

It's nice when something clicks for me and I see it clicking for other traders ... :)
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Quote from kut2k2:

Sorry I don't have it. But here's a comparison from Jurik's website.
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No disrespect to Jurik, but I've never seen price do that before :D

Seriously tho I'd like to play around with the JMA, I just don't have $5k sitting around to buy a moving average code with when I'm sure ZLEMA and/or Hull are most likely close enough for every purpose I could think of using an MA for:

- Crossovers
- Slope
- Support/Resistance

I can't think of any other uses for MAs can you?
 
Quote from ptolemy:

Ironfist. I have read about moving averages that eliminate lag but when you do so you trade lag for speculation and in my opinion you are no better for it.

Indicators like the VPCI (Volume Price Confirmation Indicator) Are a better tool. It is an oscillator and shows when Volume is confirming a price move or not. In a down trend if volume is low or shallow then the indicator will be negative and when the indicator is possitive then volume is confirming the trend.

How best to use this indicator?

If you have charting software then you can scan a large list of stocks for a negative reading on the VPCI. This will give you charts that the volume is not confirming the current price action. You can then use the next step in reasoning that if price is near a support or resistance level, a Fib level or pivot point that a price reversal is imminent.

Here is where you can learn more about this indicator

http://www.tradecision.com/support/tasc_tips/VPCI.htm

By the way how would anyone know if Swordsman is profitable or not? He sounds like he knows what he is talking about more than most here.

MACD is garbage.
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Very interesting. I'm going to program that into SierraChart and see what I think of it.
 
Ironfist, If you are really serious then here is the way that I have interpreted the formula in Telechart.

8 Bar indicator - (C * V + C1 * V1 + C2 * V2 + C3 * V3 + C4 * V4 + C5 * V5 + C6 * V6 + C7 * V7) / (AVGV8 * 8) - AVGC8

14 Bar indicator - (C * V + C1 * V1 + C2 * V2 + C3 * V3 + C4 * V4 + C5 * V5 + C6 * V6 + C7 * V7 +C8 * V8 +C9 *V9 +C10 * V10 + C11 * V11 + C12 * V12 + C13 * V13 ) / (AVGV14 * 14) - AVGC14


Good luck.
 
Quote from BullAlert:

You first, smartass, since you know the studies I have not done as well as those you have done.

Other than saying TA is not useful you have demonstrated absolutely no expertise in "price action" or any justification that you personally have developed long-term studies that support your argument. You do mention academia and I suspect this is where your interests lie: with studying published papers. I personally have give academia very little credibility because so many lack any real-world experience. Academics are driven by prestige derived from becoming an "expert" and comfort that comes from never having to put real-world money on the line to validate results. It is much safer to write about it.

Of course you don't give academia credit. After all, why should 10-30 year exhaustive studies of most indicators coming up empty stop you? You know so much better because you is so clevR

The fact that you continue to cling to TA is all that needs to be said.

But don't bother responding. Time for ignore. When the facts stare someone in the face, but they resist, then it is a waste of breath to continue
 
Quote from ptolemy:

Look at the results of the charts that I posted a few days ago for HLF using the VPCI indicator. Price did bounce and has gained 4.5 points. 4 points since my entry. Not to bad

http://i394.photobucket.com/albums/pp22/Ptolemy_2008/HLF4.gif
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Based on your graph I've decided to evaluate the indicator in an AI program that I'm porting.

It'll be a few months, but if you remind me I'll let you know what my conclusion was. It's certainly intriguing.
 
Quote from TraderZones:


Of course you don't give academia credit. After all, why should 10-30 year exhaustive studies of most indicators coming up empty stop you? You know so much better because you is so clevR[/B]
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Can you please post some of these studies? They may be a useful read.
 
Folks look at the subject of the thread "MACD indicator lags, is there software that doesn't"?

The answere is "NO". If any indicator were to lead price than it would be the "Holy Grail" and Millionairs we would all be, but the Markets would collapse long before that happened.

Volume might be the only indicator to actually lead price, but then volume is just as unpredictable in its movment and it does not always lead price.

The only holy grail to be found is within us folks, to know yourself and to keep your demonds at bay. to understand that there are repeating elements within the price action. For one we know that price will stall at critical levels and that volume can help us to gauge were price might go, so you place your bets and then place your stops. You mange the trade, your share lots and your capital. You mange risk, you know the environment around you that you are trading in. That means Market condition, World politics and current events, the price of oil and which sectors and industries are moving.

You put the odds in your favor as best you can and still there will be drawdown, but you have to stick with a solid plan, use patience, discipline and experience.

All these things are what makes a trader successfull. Not some magic indicicator. Think about it, how can you lead price? You would have to be a psychic.
 
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