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A moving average should be tied in some way to 1/2 the major cycle lengths.
If you feel as I do that 180 is a major cycle then 89 ma would capture the
desired cycle and maintain a fibonacci component. If you used a very fast
Time Series MA to keep in close to price to reduce risk, you might want to
Displace it forward by 8days to slow it down a nudge.
Yes, you can change periods trying to get close to a good MA but you sure
need to standardize. If any MA works for you fine, but don't fit the ma or
change it on a constant basis in a trade, looking for a reason to stay or
leave by shopping MAs.
The displaced MA has a value of allowing you to see stops if your program
plots beyond last bar. I have been using 8day with 7 day lead, lately .
Richard Estes
-----Original Message-----
From: Lionel Issen <lissen@xxxxxxxxxxxxxxxx>
To: metastock@xxxxxxxxxxxxx <metastock@xxxxxxxxxxxxx>
Cc: : Walter Lake <wlake@xxxxxxxxx>
Date: Sunday, September 20, 1998 11:15 PM
Subject: Re: Jurik's AMA
>Walter:
>
>You can usually approximate an adaptive ma by using an sma, ema, or
weighted
>moving average. The adaptive ma claims to give earlier signals, you can get
>earlier signal by using a shorter ma.
>
>Comments please.
>
>Lionel
>-----Original Message-----
>From: Walter Lake <wlake@xxxxxxxxx>
>To: metastock bulletin board <metastock@xxxxxxxxxxxxx>
>Date: Sunday, September 20, 1998 8:13 AM
>Subject: Jurik's AMA
>
>
>>Hi John
>>
>>I've seen this advertised regularly. I have no idea how it works, but by
>>eye-ball it looks like a 5 day MA advanced 3 days. Murray Ruggiero sells a
>>Trade Station version for $205US. His catalogue (1-800-211-9785) says this
>>"... It differs from standard adaptive moving averages in that it offers
>>higher correlation to the actual price with maximum smoothness." "...is
>>great for .... data preprocessing for developing a neural network. We use
>>this adaptive moving average as part of many of the proprietary systems wh
>>have built for our clients."
>>
>>For me, the concern with any MA is to understand how it differs from the
>>standard SMA. IMHO, adaptive indicators need to be "always" paired with a
>>"viewing" indicator, i.e., volatility indicator, etc. Otherwise you
rapidly
>>lose track of where you are at.
>>
>>Best wishes
>>
>>Walter
>>
>>
>>
>>
>>
>
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