RE: Guy, MetaStock Moving Averages....

["Guy Tann" <grt@xxxxxxxxxxxx>]

Nicholas

Moving averages are tools not indicators or signals in our system.  We
started out 50 or 60 years ago (that was in my dad's time and before mine
<G>) with the basic moving averages.  Ten day moving averages.  Twenty day
moving averages.  Take them of the Close, for example.  You could say if the
10 day M.A. was above the 20 day M.A., you were in an upward market.

Since we were working before the days of calculators (man, I'm really old
<G>), we would record indicators in columns on a sheet of paper.  We would
initially keep a 10 day sum in the column next to the number we were working
with.  This meant that we could save time by starting with that 10 day sum,
subtract out the number from 11 days ago and add in today's number (this is
where our cardboard templates came from).  This was our attempt at
automation back then, but when the most sophisticated thing out there was a
Friden calculator which was nothing more than a electro-mechanical cruncher
that you got to use only rarely because they were so expensive.  After a
while, we went to a modified moving average.  For a 10 day modified M.A., we
used to subtract 10% of the current value and then add in today's number,
thereby giving a little additional weight to the more current data.

I guess what I'm trying to say is, moving averages are a tool which you can
use to manipulate your various indicators, but they sure aren't something
I'd invest any money on, but that's just my opinion.

I've seen some really interesting systems out here.  I like JimG's stuff.
Steve Karnish has published some very interesting charts,  Walter's posts on
Excel look very interesting.  There is a ton of stuff available through this
forum.  I'm sure you'll get some great ideas.

Regards

Guy


----Original Message-----
From: owner-metastock@xxxxxxxxxxxxx
[mailto:owner-metastock@xxxxxxxxxxxxx]On Behalf Of Nicholas Kormanik
Sent: Wednesday, April 28, 1999 4:09 PM
To: metastock@xxxxxxxxxxxxx
Subject: Guy, MetaStock Moving Averages....


There are about seven basic moving average types included in MetaStock, plus
a bunch more of derived ones.

I use exponential moving averages, basically because I've been using them
most in the past.

Would you mind, please, sharing some insight as to which of the multitude of
moving averages you have found to be most useful and 'profitable'?

Thanks much for sharing.

Nicholas