Yes, but once you know a bit of the math and engineering around digital filters, it allows you to design filters in ways that further reduce (but...
Remember, frequency = 1/period. So a lowpass filter with a cutoff frequency of 0.1 will have a 10 day period. The filter's cutoff period controls...
Moving averages are lowpass filters. The most important parameter for trading is the filter's group delay, otherwise known as lag. To be useful...
That is a mighty big IF. Most people never get to the point of trading profitably. Instead of spending years bouncing from one trading idea to...
expiated, Just curious if you trade the slope of the ITL directly, or wait for a bar to change color and only then enter in the direction of the...
The thing about H-A is that even if you base your indicators off of its' closing value, you are still sampling once per day. The H-A close is the...
Real world distributions have skew and kurtosis. Add some positive skew and assume some leptokurtosis, and then do the calculation again.
I also recommend you look into the Fisher Transform by John Ehlers. The transform will "Gaussianize" your data over a given lookback window.
An random walk isn't a perfect model, but is the single best model of market movement. Besides, any number of studies doing R/S analysis have...
First of all, if prices evolve as a random walk, then all of technical analysis is charlatanism. The degree of randomness is perhaps a...
The point myself and others are making is that markets switch regimes, often violently, between random and nonrandom. Saying that autocorrelation...
My issue with the differencing method is that anytime you take a difference, you add 6dB of noise at the Nyquist frequency. You can see this in...
Financial markets can be modeled under any number random variable models and their assumed distributions (ie normal, lognormal, pareto etc.) The...
Ultimately yes, but Gaussian statistics do a poor job of describing price action. However, traders have long used simple heuristics to deal with...
When you realize that moving averages are just lowpass filters in the digital signals processing world, then group delay comes out of the math(the...
I should have added that it is traditional moving averages used in the traditional way (ie crossovers) that don't work. Certainly, some of the...
For those of you using EMAs, try using this formula as an alternative calculation to reduce the group delay of the filter: alpha = 2/(N+1), where...
I don't have to. MAs don't work, and you are not some 1:10,000,000 person who has figured out how to make them work.
I don't care about your emotions or if you put me on ignore. I don't want you to lose money, and using MAs the way you are is a losing course of...
Sure, but what time is that? Tea time? MAs have to work in real time, not when you are snuggled in your jammies with a cup of cocao.
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