|
PureBytes Links
Trading Reference Links
|
Hello ztrader,
I've used JMA for several months now (along w Mark Jurik's other
indicators). I use the JMA almost exclusively to smooth a data
series (raw price, other indicators). As Mark repeats often, it is a
proxy for price. The concept of price crossing over the JMA is very
limited in meaning as far as I can tell.
A useful visual aid for me is to plot a 5 period JMA with Kaufman's
Adaptive MA. Inspection of such achart will reveal a lot intuitively
about noise.
Best regards,
Jim Johnson
Saturday, March 24, 2001, 1:07:09 PM, you wrote:
z> On Saturday, March 24, 2001, 8:15:32 AM, Gary Fritz wrote:
GF>> E.g. for an equivalent amount of lag (delay), JMA and T3 will have
GF>> MUCH less noise (whipsaws) than simpler tools like xaverage.
z> You bring up an interesting point, and it sounds as though you are
z> (roughly) equating noise with whipsaws. The 'real' definition of noise
z> seems to be a bit elusive. :-) Could you, perhaps, elaborate on this
z> seeming equivalence between noise and whipsaws?
z> I would agree that JMA, etc have less 'noise' than others, given the
z> criteria of equivalent lag, but the whipsaw issue is not as clear. For
z> example, allowing a bit of offset/lag can also reduce whips. This
z> could lead to the conclusion that lag is not so bad after all. Heresy,
z> I know. :-) But how does one show that this conclusion, stated in the
z> original post, is not valid?
z> ztrader
--
mailto:jejohn@xxxxxxxxx
|