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Working through a mountain of unread mails...
Lionel,
I don't quite agree with you here. The idea behind adaptive
indicators/oscillators surely is to make them more sensitive in strongly
trending markets & vice versa. Iow. the moves of the indicator are magnified or
diminished by some criterium of your choice - so far I've discovered two:
volatility (however defined) and volume.
I've found this a *very* useful, i.e. lucrative, concept.
Happy Trading, JW
Lionel Issen wrote:
> 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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