|
PureBytes Links
Trading Reference Links
|
Hi Shelley
> So in Metastock, when you switch from daily charts with plotted moving
averages to weekly charts, are the moving averages accurately plotted
on the weekly charts?
Yes, but the periodicy of the moving average is then weekly so of course the values for the MA are different than when the chart was plotted as daily periodicity.
> Also, are the formulas on your site for weekly moving averages the
"real thing"?
As far as I can make them, yes. There are some issues that make some functions/indicators, those using Wilders Smoothing for example, less than accurate at the left side of the chart. When simulating weekly data on EOD charts it is very difficult under some circumstances to accurately reconstruct the first weeks data. I won't go into the problems in detail but the result is that there is a noticeable "settling" period for, say, ADX and RSI (among others). Indicators that only use the specified number of weeks (unlike EMA and Wilders() that use all available data) are usually 99.999% accurate within the first 2 valid weeks of data (N/A period excepted).
If you find any of my formulas to be less accurate than you think they should be I'm always happy to investigate. As with most perceived MetaStock problems, the problem is usually one of perception or usage. For example, weekly indicators cannot plot the true weekly value until the Friday CLOSE is known.
While it's possible to plot a DLL-based weekly indicator (mine are not DLL-based) for the full duration of the week, that serves no practical purpose because the CLOSE, HIGH or LOW used isn't valid until the week has ended. Typically, my weekly idicators give you the choice of updating (dynamically) on each bar, on the Friday bar, or on the Monday bar. Using the Monday bar update option when backtesting means that you are at no risk of using future data and getting over-optimistic results - there's no need to add a delay to the weekly indicator plot. The dynamic option only affects the current bar, as it does with weekly bars being updated with daily data anyway, and the Friday-update option allows you to do any analysis you want over the weekend once Friday data has been added.
Weekly indicators for EOD data are not everyone's cup of tea, but they're an option if they fit with what you're trying to do.
Regards
Roy
Thanks again Roy.
Shelley
--- In equismetastock@xxxxxxxxxxxxxxx, "Roy Larsen" <rlarsen@xxx> wrote:
>
> Hi Shelly
>
>
> >At the risk of appearing a few bricks short of a load, I also want to
> confirm that, for example, a 5 week moving average is equivalent to a
> 50 day moving average. Specifically, is a day period ma always times
> five to equal a week period ma?
>
> Did you mean a 25 day moving average?
>
> It's a common misconception that a 5 week MA is the same as a 25 day
MA (or 10 week is equal to 50 days etc.). This is not the case. If you
want to use a 25 day MA as a proxy for a 5 week MA then that is OK,
but do understand that it is only an approximation, not the real
thing. There are many "weekly" formulas for daily charts that are just
approximations. Some are nearer to the real thing than others, but
some don't even come close.
>
> The real thing won't necessarily make you any more money but it does
accurately represent what you would see on a weekly chart if you
switched to weekly periodicity.
>
>
> Regards
>
> Roy
> www.metastocktips.co.nz
>
>
>
> [Non-text portions of this message have been removed]
>
SPONSORED LINKS
Business finance course Business to business finance Small business finance
Business finance consultant Business finance magazine Business finance schools
--------------------------------------------------------------------------------
YAHOO! GROUPS LINKS
a.. Visit your group "equismetastock" on the web.
b.. To unsubscribe from this group, send an email to:
equismetastock-unsubscribe@xxxxxxxxxxxxxxx
c.. Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service.
--------------------------------------------------------------------------------
[Non-text portions of this message have been removed]
------------------------ Yahoo! Groups Sponsor --------------------~-->
Try Online Currency Trading with GFT. Free 50K Demo. Trade
24 Hours. Commission-Free.
http://us.click.yahoo.com/RvFikB/9M2KAA/U1CZAA/BefplB/TM
--------------------------------------------------------------------~->
Yahoo! Groups Links
<*> To visit your group on the web, go to:
http://groups.yahoo.com/group/equismetastock/
<*> 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/
|