PureBytes Links
Trading Reference Links
|
I've been using TS products for a number of years and TS2000i for the last
5. A few days ago I noticed some 'strange' behavior in the charting of a
Simple Moving Average. It was significant enough that I thought I'd check to see
if anybody else may have seen this or might see it in the future. Let me
explain.
Let me first give the specifics of the chart. I don't think these
'specifics' matter much but they at least provide a concrete starting point. My chart
was a 1 min. bar of ES Z5. On this I had Bollinger Bands (20, 2 stdev) and
a 20 period SMA. I then happened to notice that it appeared that the 20
period SMA was NOT in the middle of the upper and lower Bollinger Bands. This
was confirmed in several ways. The 'visual' method was done by putting
ANOTHER 20 sma indicator on the chart and observing that the two different 20 sma
did NOT overlay each other. However, if I then turned the sma status OFF
and then back ON, the discrepancy 'went away'. Over the course of time, the
discrepancy would then slowly drifrt back into the chart.
It's a real pain in the ass to not be able to trust something simple like a
moving average. I've given enough detail so that it would be relatively
simple for somebody else to try to reproduce what I've seen. I'd sure appreciate
hearing form anybody who tries the experiment and, more important, from
anybody who has seen this problem and understands how to 'make it go away'!
Thanks.
Lee Scharpen
|