Originally two first posts were titled "Fooling around" and "Some more fooling around..." and were posted in "Something interesting..." thread. Since this became an independent thread, some additions (just to make it worth a reading
), and since actually there is nothing to fool around with moving averages :
"Only another MA crossover..." : all those that know me a little closer know how much I like MAs. I think that moving average (along with price, not after the price) is the basis of TA. In my opinion unfiltered price is useless (that is when people think that everything is random, which is simply not true) And so far, one of the best filters for price found out by men are the moving averages. In this indicator the colored zones are, what is called, a "value zone" and the color itself is a reminder of the "trend"
Now there are zillion moving average "systems". I do not want to underestimate anybodies work, mind, or effort to come up with one. Here you can find a link to latest (published in 2008) book of Dr. Alexander Elder : "Sell and Sell short" (9.5 MB, and I do not know for how long RS keeps files on their servers, so...). I doubt that, after reading it, there will be a lot of people still thinking "just another MA system..."
"Sell and sell short" at :
RapidShare: Easy Filehosting
a reminder :
MA1Method and
MA2Method parameters :
0 - SMA (simple moving average)
1 - EMA (exponential moving average)
2 - SMMA (smoothed moving average)
3 - LWMA (linear weighted moving average)
the one on post 3 is SMMA
Linear Mode
