Spaf
Honorary Hall of Fame Member
imported post
Need your help with a problem.
In April-May and in July-August we had two down cycles in the market. In both of the down cycles there was a period where the market started to go up, then declined, and declined futher. If I follow the moving average what ways can I filter out these sort of false upturns. I figured the cycles were about thirty days apart and applied a 15 day moving average.Was theupturn on Aug 1st + 5days a uncertain signal?
Filters
Filters are used to eliminate uncertain signals. They objectively measure if price has crossed the moving average. Commonly used filters are:
:?
Need your help with a problem.
In April-May and in July-August we had two down cycles in the market. In both of the down cycles there was a period where the market started to go up, then declined, and declined futher. If I follow the moving average what ways can I filter out these sort of false upturns. I figured the cycles were about thirty days apart and applied a 15 day moving average.Was theupturn on Aug 1st + 5days a uncertain signal?
Filters
Filters are used to eliminate uncertain signals. They objectively measure if price has crossed the moving average. Commonly used filters are:
- Closing Price - either one, two or three closes must cross the Moving Average;
- Typical price, Median price or Weighted close;
- The entire bar must cross the MA;
- Two or three bars (in succession) must cross the MA; or
- Moving Average Direction
:?