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> The central black trend line and the red line are probably moving
> averages of one type or another. You could construct a chart and
> try various averaging lengths to see if you can find averaging
> lengths which match the charts you referenced.
Try it. Yes, the red line is obviously a basic MA of some kind.
But that black line isn't any MA (or linear regression or...)
that I know of. Look at the 3rd chart. The center line (red in
that chart) is remarkably smooth, and yet it doesn't lag the
price much at all.
The only way I know of to get results like that is to curve-fit
to the entire data series. That is, each point is calculated
with full knowledge of past AND future points. A polynomial fit,
as Audrey mentioned, is one possibility.
Of course, you couldn't use that to trade, since you have no
knowledge of future data points (bummer!). If that's what those
charts really are, then they're just dummied-up pretty sales
tools that couldn't actually be used for trading. *IF* the guy's
service actually works anywhere near as well as he claims, then
he couldn't be using a polynomial-fit curve for his trading
decisions.
Gary
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