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GV,
1.Charts will be broadcast to those choosing to receive emails but
not saved in the message archive.
2.The RMO uses recursive smoothing.
3.While the indicator may not come with the flexibility of choosing
your own parameter, it can be modified.
4. The RMO is the Rainbow Indicator created by Mel Widner, Ph.D. and
originally introduced in the July 1997 issue of Technical Analysis of
Stocks and Commodities magazine.
The Rainbow Charts indicator is trend-following indicator. The basis
of the Rainbow Charts indicator is a 2-period simple moving average.
Recursive smoothing is then applied to the original moving average
thereby creating 9 additional moving averages; each new moving
average is based on the previous moving average. Through this use of
recursive smoothing a full spectrum of trends is created that, when
plotted using continuous colors, have the appearance of a rainbow.
The Rainbow Oscillator is also a trend-following indicator that is
based on the same calculations used to create the Rainbow Charts. The
Rainbow Oscillator is derived from a consensus of the Rainbow Charts
trends. It defines the highest high and lowest low of those moving
averages to create an oscillator and bandwidth lines based on those
calculations.
Click on the link for the Meatastock formula:
http://www.traders.com/Documentation/FEEDbk_docs/Archive/0797/tradetip
s.html
or go to:
http://www.paritech.com/education/technical/custom/indicators/97jul.as
p
The article link is:
http://www.traders.com/Documentation/FEEDbk_docs/Archive/0797/0797Widn
er.html
Discussion at the Equis Forum:
http://forum.equis.com/forums/post/23170.aspx
Hope this helps,
Preston
--- In equismetastock@xxxxxxxxxxxxxxx, "Vasanth Mohan G Buddaan"
<vgbudawn@xxx> wrote:
>
> Talking of zero lag moving averages, there is an 'adjusted'
oscillator on which there was a good amount of discussion earlier -
RMO - which is also good at tagging onto the flow of the prices like
the TEMA
>
> Hope my below given chart gets posted on the yahoo (otherwise it
would be meaningless)...
>
>
>
> Have taken 2 weeks of 5min chart of nifty (Indian Index) in which
period there is trending in both up & down sides, flat periods and a
couple of gaps which were followed by contra market movement by which
I mean that the prices moved opposite to the gap on both occasions -
once after violating the low and once without violating it on 15th &
20th respectively. When the price violated the low formed on the gap
many (trend following) systems would have given a 'sell' which would
have got whipsawed much later in a normal MA cross over system (like
the one shown at the top in green colour - which is a difference of a
long & short period moving averages).
>
> Whereas the RMO given at the bottom in dark blue colour immediately
turned up in the direction of the recent price behaviour ignoring
the 'gap down' - the area marked between the yellow - dotted & plain
lines. On 20th, it was so swift the whipsawing would have been
minimum as compared to the normal MA crossover system given at top of
the chart.
>
> Among the Moving Averages - TEMA (red line) at the bottom and EMA
(yellow) at the top - both of 10d - obviously TEMA has the minimum
lag and hence a faster recovery after the gap. To me it looks like
RMO is largely a moving average cross over system as may be seen by
the white & black lines giving intermediate tops & bottoms in RMO
which mostly coincides with the price extremes or does so with a
negligible lag. There is quite possibly a component of a conventional
oscillator built into it. The main problem is that the indicator does
not come with the flexibility of choosing our own parameter. It is so
good at capturing the trends but does not have much of the predictive
ability of an oscillator resuting in suffering the 'gaps' - may not
be 'after' but 'prior' to them.
>
> Just a post to throw up an idea at altering a MA Cross Over
system...
>
>
> gv
> ----- Original Message -----
> From: Lionel Issen
> To: equismetastock@xxxxxxxxxxxxxxx
> Sent: Tuesday, February 17, 2009 11:22 PM
> Subject: RE: [EquisMetaStock Group] Re: adjusted moving avs
>
>
> Do you need a zero-lag moving average?
>
>
>
> From: equismetastock@xxxxxxxxxxxxxxx
[mailto:equismetastock@xxxxxxxxxxxxxxx] On Behalf Of pjrbutler
> Sent: Tuesday, February 17, 2009 3:44 AM
> To: equismetastock@xxxxxxxxxxxxxxx
> Subject: [EquisMetaStock Group] Re: adjusted moving avs
>
>
>
> Thx for your replies
> I had a look at Jurik's. It's a pity he charges so much , but it
does
> look a very good mov av. Tillson comes out second best. Has
anyone
> got his address ? I googled him. There were 186,000 pages of
> Tillson's in Colorado !
>
> Thx
> Pat
>
> --- In equismetastock@xxxxxxxxxxxxxxx, Code 2 <Code2@> wrote:
> >
> > Mark Jurik's JMA is a very nice low-lag moving average with
little
> > overshoot. See http://www.jurikres.com/catalog/ms_ama.htm#top
> >
> >
> >
> > From: pumrysh <no_reply@xxxxxxxxxxxxxxx>
> > To: equismetastock@xxxxxxxxxxxxxxx
> > Date: Sunday, February 15, 2009, 10:20:18 AM
> > Subject: [EquisMetaStock Group] Re: adjusted moving avs
> >
> > Hi Pat,
> >
> > The problem with any moving average is the lag that is
introduced
> when
> > you begin manipulating them. So the question then is are you
really
> > improving them? There is a formula out there that was discussed
> several
> > years ago at:
> >
http://finance.groups.yahoo.com/group/equismetastock/message/23694
> >
> > I'm not aware of any that restrict the advance/decline by a
> percentage
> > or points...seems that would defeat their purpose.
> >
> > Another thought is an adaptive moving average which is set to a
> small
> > lookback period at the beginning of a trend then adjust to
longer
> > lookbacks as the trend progresses based on an indicator value.
> There
> > are DLL's in the files section that will help you with this
task.
> >
> > Preston
> >
> >
> >
> >
> > --- In equismetastock@xxxxxxxxxxxxxxx, "Patrick Butler"
<pat494@>
> > wrote:
> > >
> > > Hi,
> > > Our old friends moving averages do a good job and are
generally
> > useful. However to improve them and their forecasting ability,
is
> it
> > possible to negate their larger than normal swings up and
down ? A
> > spike of more than X points or a percentage perhaps ? Perhaps
there
> is
> > a formula already out there somewhere ? Jurik may have done
> something
> > along these lines.
> > > Thanks
> > > Pat
>
------------------------------------
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