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Since the moving average is a summation of a set of
values, by its very nature it will lag. To reduce the lag we lose
information. The moving averages in Metastock, and in all or almost all
software, are statistically incorrect in that the moving average is
shifted forward 1/2 period so that it ends at the right end of the chart.
If you shift the moving average back 1/2 the number of periods in the moving
average, you will eliminate the lag, except that you lose any moving average for
the last 1/2 period, that is at the right end of the chart where you want it.
MACD and other oscillators try to overcome this in
various ways, with some success.
Last year there were some formulas posted for
zero-lag moving averages. I tried them out, and overall the results
were poor. Many decades ago Curtiss Dahl suggested using a moving average
and the same moving average shifted either forward or back several
periods ( I forget which it was). Signals were given by a crossing of the
2 moving averages. I think that the MACD and its cousin the PO (price
oscillator) are better.
Try the different kinds of moving
averages that are available in metastock. Some may give you the kind of
information that you are looking for.
Lionel Issen<A
href="mailto:lissen@xxxxxxxxx";>lissen@xxxxxxxxx
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<DIV
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<A title=wooglin.org@xxxxxxxxxxx
href="mailto:wooglin.org@xxxxxxxxxxx";>wooglin.org@xxxxxxxxxxx
To: <A title=metastock@xxxxxxxxxxxxx
href="mailto:metastock@xxxxxxxxxxxxx";>List MetaStock
Sent: Saturday, February 10, 2001 10:54
AM
Subject: Lag In Moving Avg
Aside from Jurik's proprietary method, does
anyone know of a way to formulate a way to get the lag out of a moving
average.
Thanks,
Jim Barone
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