The market is a dynamic, living and instant measure of the constant battle between Fear and Greed, between Supply and Demand. The participants in this battle are also split into two groups, the Smart Money and the Average Investor; those who profit over the long term due to skill and those from whom the funds ...…
In this round of testing we are looking at the Double Exponential (D-EMA) and Triple Exponential Moving Averages (T-EMA). We have already tested the D-EMA and found that it wasn’t as effective as the EMA but wanted to test it over longer periods and compare it to the T-EMA. In conducting these tests we measured ...…
The Double and Triple Exponential Moving Average were created by Patrick Mulloy and first published in the February 1994 issue of Technical Analysis of Stocks & Commodities magazine – Smoothing Data With Less Lag. Mulloy stated in his article: . “Moving averages have a detrimental lag time that increases as the moving average length increases. ...…
In this round of testing we will be looking at a mix of different smoothing methods and averages: The Moving Linear Regression or Time Series Forecast (TSF) and The Linear Regression Indicator (LRI) which aren’t actually moving averages but can be used in the same way. Plus Wilder’s Smoothing AKA Smoothed MA (WS-MA) and the ...…
The Exponential Moving Average (EMA) is a very popular method for smoothing data in an attempt to eliminate noise and our tests show that it is also highly effective. Unlike the Simple Moving Average (SMA) that applies equal weight to all data, the EMA applies more weight to the recent data so that it reacts ...…
The Simple Moving Average or SMA is probably the most commonly used technical indicator of all. It can be calculated by taking the average of a data series (usually the close price) over a set number of periods. As each period progresses the last value is dropped out of the calculation and the latest one ...…
