What is Wiggle and Filtering?

N

Nana Trader

Does wiggle mean "the initial pullback to the entry point after
entring a position? and what is its relation to stop loss?

Does filtering mean"finding a good price setup pattern that
has enough room to run trough to the exit point?

I would appericiate if you can define them with an example given?
 
well - filtering for me constitutes of finding a stock that meets a specific condition, where I enter a position, that I perceive to be profitable over the course of time.

"wiggle" - unfamiliar with that term, but I am not english native speaker
 
Quote from Nana Trader:

Does wiggle mean "the initial pullback to the entry point after
entring a position? and what is its relation to stop loss?

Does filtering mean"finding a good price setup pattern that
has enough room to run trough to the exit point?

I would appericiate if you can define them with an example given?
More...
Wiggle is usually meant to describe "noise" or "elbow room" in price movement, in particular, movement that is "unexplainable" by one's methods. I am not sure that it has to apply to a counter move against the trend - at least for me, that is called a "coil."

Filtering means that you are taking something and either attenuating or dampening some part of the "signal." A moving average is a filter that dampens the high frequencies, i.e., it more clearly shows the "longer" term trend.

nitro
 
Quote from azzie:

thanks for the explanation, nitro

wiggle seems to indicate a situation where you are being screwed :)
More...
YW.

No, wiggle is usually a move within tolerance that you are willing to accept against your position.

"Shaken" or "shake out" is the term used when you get in, the move goes against you, shakes you out of a position, then continues merrily in the direction of the trade you were in - that is getting screwed.

nitro
 
Quote from Nana Trader:

Does wiggle mean "the initial pullback to the entry point after
entering a position? and what is its relation to stop loss?

Does filtering mean"finding a good price setup pattern that
has enough room to run trough to the exit point?

I would appreciate if you can define them with an example given?
More...

Let's say you buy Dell at 27.00, as soon as you buy it goes to 27.05 and then drops to 26.95 then continues to drop to 26.80, then it runs back up to 27.25 where you exit the trade. In that case Dell had a wiggle of 20 cents that you withstood in order to get your profit. A wiggle is similar to drawdown but in trader lingo. Another term that is similar is pullback and the all popular old school SOES term of the jig. Now a filter is something different all together. Filters are things you set up to fine tune search criteria. You may want to see stocks that are trading that only have a minimum price of 10 and maximum price of 100. You may want to see stocks that only trade 500000 shares per day. Those are all types of filters. There are many others including technical ones like RSI overbought etc. Hope that helps.
My site helps traders filter in real time if you want to check it out.
 
Quote from nitro:

Wiggle is usually meant to describe "noise" or "elbow room" in price movement, in particular, movement that is "unexplainable" by one's methods. I am not sure that it has to apply to a counter move against the trend - at least for me, that is called a "coil."

Filtering means that you are taking something and either attenuating or dampening some part of the "signal." A moving average is a filter that dampens the high frequencies, i.e., it more clearly shows the "longer" term trend.

nitro
More...
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Good definitions & 2 more examples. An example of wiggle would be a 1 or 2 minute candle chart [noise] on a multi day swing trade.

Another filter is waiting a certain time period [planned ] after price crosses a moving average. May cut down on whipsaws and false moves.
:cool:
 
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