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Gary Funck wrote:
>
> DH pointed out the following:
> > > As a short term trader, I might be holding positions
> > > on average about 3 to 5 days, or 1 to 10 days nin/max. If my "cycle"
> > > of choice is 4, than 1/4 of that is 1 day.
> >
> > I think your "half cycle" is 4 so the cycle is 8 and 1/4 of that is 2.
>
> He's right, I should've used a full cycle of 8. The point I was trying
> to make still holds: that short-term moving average gets awful short
> when working with time periods typical of short-term trades. Does
> this mean that we should always be using intraday data for systems that
> hold positions for only a few days, if we're basing our system off of
> some combination of MA's?
Just a thought, but I think if your price bars are of a length that
would require you to resort to MA lengths of 2 periods or less, then the
length of the price bar lengths should be reduced.
Regards,
Monte
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