|
PureBytes Links
Trading Reference Links
|
You cannot reply to this message via email because you have chosen not
to disclose your email address to the group. Please use this
page to reply.
<font
size=2 color=navy face=Arial>Roy<font size=2 color=navy
face=Arial>,
<font size=2 color=navy
face=Arial>Many
thanks, it worked like a charm. I had seen this post from you before, but it
didn’t click until I had the problem!
<font size=2 color=navy
face=Arial>Thanks
again,
<font size=2 color=navy
face=Arial>Barry
<span
lang=EN-US >-----Original
Message-----
From: Roy Larsen
[mailto:rlarsen@xxxxxxxxxxxxxx]
Sent: <st1:date
Month="1" Day="15" Year="2003"><span lang=EN-US
>Wednesday,
15 January 2003<span
lang=EN-US >
<span
lang=EN-US >7:51
PM<span lang=EN-US
>
To: equismetastock@xxxxxxxxxxxxxxx
Subject: Re: [EquisMetaStock
Group] Re: help with stop formula
<font size=3
face="Times New Roman">
<font size=2
face="Courier New">Barry<font
size=2 face="Courier New">
MACD uses exponential smoothing. The 26 period EMA
requires at least 100
periods for reasonable accuracy, but 130-150
periods would be better. Your
chart probably has more periods loaded than this
but your exploration is
probably using "minimum" periods or
something less than 100.
The reason for the discrepancy with less bars
loaded by the exploration is
that an exponential moving average retains a
portion of ALL data, not just
the 12 and 26 periods as used in MACD. The older
data has a diminishing
effect as it ages, but until there is at least 4-5
times as much data
supplied as there are periods specified by the EMA
the accuracy will be
suspect.
An easy test for this is to slowly increase the
number of periods for your
exploration and you will find that as you increase
the number of periods the
accuracy will improve.
There are a number of MS functions that suffer
from the same problem, namely
any function that uses exponential smoothing
internally, including Wilders
Smoothing as found in RSI and ADX. I posted the
following item to
StockCentral several months ago. See
<a
href="">http://www.stockcentral.com.au/forum/machine/Forum32/HTML/000414.html
. It
expands a little on what I said above.
<span
>Roy<font
size=2 face="Courier New">
|