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MrPip,
LSMA alone will never work. Of course you can use it as supporting indicator but don't think it's much better than other similar indicators. You will always have a problem of determinig the current market rhythm to correctly select the LSMA period. In that case it's better using digital filters which can adapt themselves with help of Fourier analysis.
What is really interesting about all this stuff, it's if you make an adaptive linear regression channel. Most traders can draw a regresion channel by hand, but I haven't seen any automated method.
I have some ideas, if anyone interested I will continue.
Wookey
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