Stocks & Commodities V. 23:2 (22-27): Sidebar: MOMA and Excel by Stephan Bisse
Product Description
Stocks & Commodities V. 23:2 (22-27): Sidebar: MOMA and Excel by Stephan Bisse
Simple moving averages are great tools for filtering out noise from time series, but all they can do is show where a time series has been. The only way that a moving average can point the way to market direction is if additional information — a leading indicator for that time series — is included in the calculation. One way of doing this is adjusting each datapoint in the lookback period by the absolute move that preceded each datapoint as a percentage of the sum of all the absolute moves in the lookback period. If the premise that large moves in a given direction are harbingers of a new trend in the same direction is correct, then the move-adjusted moving average (MOMA) will be a superior indicator of future market direction when compared to a simple moving average.
Simple moving averages are great tools for filtering out noise from time series, but all they can do is show where a time series has been. The only way that a moving average can point the way to market direction is if additional information — a leading indicator for that time series — is included in the calculation. One way of doing this is adjusting each datapoint in the lookback period by the absolute move that preceded each datapoint as a percentage of the sum of all the absolute moves in the lookback period. If the premise that large moves in a given direction are harbingers of a new trend in the same direction is correct, then the move-adjusted moving average (MOMA) will be a superior indicator of future market direction when compared to a simple moving average.
FOR THOSE ORDERING ARTICLES SEPARATELY:
*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.
| Take Control of Your Trading. |
| Professional Traders' Starter Kit |
| All these items shown below only $299.99! |
| Click Here to Order |