Re: Lag In Moving Avg

["jhmtn" <jhmtn@xxxxxxxxxxxxxxx>]

Please excuse my ignorance all, but while I've followed 
the discussion on a non-lag MA and have set up some of the suggestions posted 
here and studied those non-lag MA's on charts, I must admit that I'm not 
sure what advantage they give me in trading.
 
Put another way, since they seem to hug the price bars so 
well, how can I use that fact to trade with?  I use MAs to confirm a trade 
decision, to tell me when the trend is ending and consolidation has begun (and 
vice-versa), and as one of my 4 types of exits from a position.
 
How can I translate a non-lagging MA into trading.  
Somehow I'm just missing it's advantage and how it would be used.
 
Thanks, ................... John
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  ----- Original Message ----- >From: 
  "Lionel Issen" 
  >Reply-To: <A 
  href="mailto:metastock@xxxxxxxxxxxxx";>metastock@xxxxxxxxxxxxx 
  >To: 
  >Subject: Re: Lag In Moving Avg 
  >Date: Sat, 10 Feb 2001 16:06:57 -0600 
  > 
  >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 
  >lissen@xxxxxxxxx 
  > ----- Original Message ----- 
  > From: wooglin.org@xxxxxxxxxxx 
  > To: 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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