|
PureBytes Links
Trading Reference Links
|
velawan,
I did an internet search and this is what I found.
SINCE YOU MENTIONED HURST:
What are centered moving average projections? This technique was
taught by Hurst 30 years ago. It requires a charting program with the
capability of offsetting moving averages in time. It involves first,
identifying the cycle you want to measure by looking at past patterns
using envelope analysis. Then take a simple moving average equal to
the length of the cycle and center it in time by dropping it back
half the number of days (hours, weeks, etc.) in the moving average.
Next do the same with a moving average equal to one half the length
of the cycle, i.e. drop it back in time by 1/2 the length of the
moving average.
Next take out a colored stock proctoscope, otherwise known as a
marking pen, and draw extensions of the moving averages on your
computer screen, fitting the projections to the price action beyond
the end of the moving averages. Where the two lines cross is the
halfway point of the move. Calculate the number of points to the
price high or low preceding the projected crossover. Theoretically,
the move should continue for the same distance beyond the projected
crossover.
Finally, get a clean piece of toilet paper, spit on it, and wipe off
your computer screen. (The marker, remember? Actually, instead of the
marker, you can use the line drawing tool. On livecharts, just draw
the chart twice, leaving the first line on the screen when you draw
the second one with the other moving average.)
NEXT AN INTERESTING DISCUSSION OF MOVING AVERAGES HERE:
http://www.adblue.de/cqg/movings.htm
SO WHAT IS A CENTERED MOVING AVERAGE?
Centered Moving Average
With quarterly data a four term moving average cannot be centered
properly. This is handled by a process known as centering. The
moving average for the third quarter is calculated by summing
quarters 1 through 4 and 2 through 5 and dividing the total by 8.
A pretty good discription and seems pretty easy. Here's a shot at a 4
day centered moving average:
{1-4}(REF(C,-4)+REF(C,-3)+REF(C,-2)+REF(C,-))+
{2-5}(REF(C,-3)+REF(C,-2)+REF(C,-1)+C)/8
This is not very eloquent but it does make the point...that is you
would be a day behind!
Here's some more to think about.
Detrended Price Oscillator
The Detrended Price Oscillator is a technical indicator that smoothes
the trend in prices. When price is detrended using the detrended
price oscillator, many technicians believe that cycles and overbought
and oversold levels can be more easily identified. The principal is
similar to using longer length technical indicators rather than
shorter length technical indicators. It removes some of the 'noise'.
To calculate the detrended price oscillator an x-period moving
average is centered. This is done by shifting the moving average back
[(x/2) + 1] period. This centered moving average is then subtracted
from the close. Because it is set up as an oscillator, it will cross
above and below zero. The last [(x/2) + 1] period will have no value.
This is because the detrended price oscillator is shifted back [(x/2)
+ 1] period. The detrended price oscillator may recognize underlying
cyclical movements in price.
Notice in the description above that the last period has no value.
Hope all this helps...certainly was thought provoking!
Preston
--- In equismetastock@xxxxxxxxxxxxxxx, weerayah velawan
<vela007_2000@xxxx> wrote:
> Hi All
>
> Does anyone now the formula for Centred Moving
> Average? If I am not mistaken it was used by Mr. Hurst
>
> Thank you and regards
> velawan
------------------------ Yahoo! Groups Sponsor ---------------------~-->
Your own Online Store Selling our Overstock.
http://us.click.yahoo.com/rZll0B/4ftFAA/46VHAA/BefplB/TM
---------------------------------------------------------------------~->
To unsubscribe from this group, send an email to:
equismetastock-unsubscribe@xxxxxxxxxxxxxxx
Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
|