The Mathematics of Moving Averaging

[jack hershey]

Quote from jack hershey:

Here is the left screen

Notice the icicles on the DOM.

Also all the two pair analysis screens (OTR) are there.

And tucked in the lower right is the Premium based Str/Squ invention.

If you look at how the MACD and Stochs are synchronized (proper coefficients and appropriate signal generators) relative to all the othe leading indicators, then you casn see how following the two triads to make up an OOE works on two line indicators.

All of this works very keenly on stocks.

 

[Fractals 'R Us]

Quote from tradingjournals:

Does any one understand what this post says?

Yes... I also know the meaning of life. PM me for that....

 

[Fractals 'R Us]

Quote from kut2k2:

1 - You claim to have written something about the mathematics of moving averages.

2 - You don't disclose what that something is.

3 - You ask questions I would expect from somebody who doesn't know a bloody thing about moving averages.

I detect a homework troll.

God forbid somebody should learn something!

Anyhow, I hate moving averages and don't use them at all. Take the SMA; a change in the length by +-1 will change the included data at the left edge of the screen. That change has as much import as a change in the most recent data. People call that "lagging" and they speed it up by going to the EMA... that is kludgey enough to be rather offputting right from the start but then people backtest the idea that the EMA can be helpful and they find it's so close to random that it's not much use. Maestro has posted about "splines", some sort of mathy thingy that he swears by.. you might want to look that up... one poster said something about fibonacci weighting or something, might look at that too...

 

[bh_prop]

Quote from jack hershey:

I will put up my left and right screens for using leading indicators of price. The two line stuff is on the right screen. There are different go/no go signals for each of the three indicators on the right.(see heavier horizontal lines to be broken and see histogram as well (color coded))

Thank you for posting this attachment Jack. I know you are using TN nowadays. Do you still by chance use TS or at least have a version of it running at your office? I ask because I have attempted to create a channel drawing tool such as you posted but thus far have been unsuccessful.

 

[Paddler]

Quote from jack hershey:

...

If you add a vector orientation to the crossover, then you have a "confirming" signal of sentiment. It is "how" the "fast" line crosses the "slow" line.

The other three elements in the OOE are Min, Max and failure to cross.

The second triad group is Divergence, Min or Max, Convergence. This is the sequential measure of trends reaching maximum money velocity.

Jack, isn't it that "failure to cross" is a triad of Convergence >>> Min >>> Divergence? If so, it cannot be an element of OOE.

...

I will put up my left and right screens for using leading indicators of price. The two line stuff is on the right screen. There are different go/no go signals for each of the three indicators on the right.(see heavier horizontal lines to be broken and see histogram as well (color coded))

For green horizontal lines, are you talking about the historical high of historgram bars on the third pane (MACD), the 80/20 lines on the second pane (Stoch Slow), and the zero line on the first pane (Stoch Fast) from the bottom on the ES chart in your "5-rightscreen.png" attachment (http://www.elitetrader.com/vb/attachment.php?s=&postid=3892198)?

TIA

 

[tradingbug]

Quote from bh_prop:

Thank you for posting this attachment Jack. I know you are using TN nowadays. Do you still by chance use TS or at least have a version of it running at your office? I ask because I have attempted to create a channel drawing tool such as you posted but thus far have been unsuccessful.

I think he was just doing me a favor. If you look at the prices in the picture, ES is in the 1300s.