Re: Simple vs. Exponential MA periods

["Philip Lane" <philtronics@xxxxxxxxxxx>]

I like the filtration chacteristics better for an XMA. Sometimes with the 
simple average it's a problem when a big event in the past suddenly drops 
out of the total. And calculating the simple MA requires loading 50 days of 
data for each point, adding and dividing, but for the XMA all I need is 
yesterdays value. At least I think that's how i did it... it's getting 
pretty late.
phil
www.gigascanner.com
www.gigastockpicks.com


----- Original Message ----- 
From: "CSS" <casisl1@xxxxxxx>
To: "Philip Lane" <philtronics@xxxxxxxxxxx>; "Omega List" 
<omega-list@xxxxxxxxxx>
Sent: Monday, June 01, 2009 12:48 PM
Subject: Re: Simple vs. Exponential MA periods


> I assume that you are aware that the filtration characteristics of the two
> averages, even with "equivalent" time spans, are quite different and that
> the shapes of the outputs will often differ significantly.
>
> I don't understand the problem with the simple MA - the only difference is
> that you must maintain a list of the points included within the current
> "window".
>
> Regards,
> Carroll
>
>
> ----- Original Message ----- 
> From: "Philip Lane" <philtronics@xxxxxxxxxxx>
> To: "Omega List" <omega-list@xxxxxxxxxx>
> Sent: Tuesday, May 26, 2009 7:32 AM
> Subject: Simple vs. Exponential MA periods
>
>
> > Hello,
> >
> > This guy I know has been watching the Oliver Velez videos (have you seen
> > them?), and consequently wants me to program 40-day and a 20-day simple
> > moving averages for the web site.
> >
> > Now we all know that there's nothing magic about these particular
> averages.
> > They look great on the videos, on those particular stocks, but other
> stocks
> > probably would fit better with different periods. But I'd like to give 
> > him
> > what he wants.
> >
> > Unfortunately a Simple average is not so simple to calulate. An Xma is
> much
> > easier. So I was wondering if anybody knows generally how the periods
> would
> > compare to get a roughly equivalent.  For example, I know that  a
> 65-period
> > Xma is "about" equivalent to a 50-period simple average.
> >
> > Thank you,
> >
> > Phil
> > www.gigascanner.com
> > www.gigastockpicks.com