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Re: Coyotte

Hi Coyotte,
Firstly I would like to thank you for at least being brave enough to post some charts, and a description of how you perhaps go about some of your trades. Wish more posters would do the same on this forum.

I was however under the impression you do not use moving averages of any type in your comments of post #73 in the "Re: Improving Chart Analysis Thread" Refer to the comments from that post below:

Not trying to criticize here, rather just talking from my own experience using Bollinger Bands years ago. I found them to be of very little use in my trading
If you look at what Bollingers are and what you are trying to acheive with them, it's a complete waste of time as they are lagging indicators and will give you very little "earling warning" of anything.

What is a moving average?? It is simple cutoff filter. Depending on the span chosen the resulting trace or line is a representation of the sum of all the cycles greater than the span chosen. There is only one problem here, the relationship between the moving average and the data it smoothes is NOT the one that is shown on stock price charts. In fact, the moving average data point plotted in association with the last price datum should be associated with a price datum half the time span of the average in the past!!!! A moving average becomes a great deal more useful if plotted correctly. To do so, the theoretical time lag of such an average must be taken into account.

How do you do this? Move the moving average back in time half the span you have chosen. In doing so you will see that MA is now in sync with the price action!! The remaining price action between the end of the MA and the last data point is you time delay or lag in the filter. There should be enough info in terms price data for you to extend the MA to end of the price action, or you can simply use various curve fitting techniques to help you do this.

By doing this, you can now virtually toss away all the other lagging indicators you are using like adx etc. From you modified Bollinger chart, you are now able to improve the timing of your pivots, as now price is oscillating from one band (upper) to another (lower) You now have just one tool that may aid you to trade forward timeframes. One caveat though, you need to be able to choose the correct span (dominant cycle) of your price action.

Price itself is the best indicator

Cheers

<blockquote data-quote="wavepicker" data-source="post: 78388" data-attributes="member: 2120">Re: CoyotteHi Coyotte,Firstly I would like to thank you for at least being brave enough to post some charts, and a description of how you perhaps go about some of your trades. Wish more posters would do the same on this forum.I was however under the impression you do not use moving averages of any type in your comments of post #73 in the &quot;Re: Improving Chart Analysis Thread&quot;&nbsp; Refer to the comments from that post below:Not trying to criticize here, rather just talking from my own experience using Bollinger Bands years ago. I found them to be of very little use in my tradingIf you look at what Bollingers are and what you are trying to acheive with them, it&#039;s a complete waste of time as they are lagging indicators and will give you very little &quot;earling warning&quot; of anything.What is a moving average?? It is simple cutoff filter. Depending on the span chosen the resulting trace or line is a representation of the sum of all the cycles greater than the span chosen. There is only one problem here, the relationship between the moving average and the data it smoothes is NOT the one that is shown on stock price charts. In fact, the moving average data point plotted in association with the last price datum should be associated with a price datum half the time span of the average in the past!!!! A moving average becomes a great deal more useful if plotted correctly. To do so, the theoretical time lag of such an average must be taken into account.How do you do this?&nbsp; Move the moving average back in time half the span you have chosen. In doing so you will see that MA is now in sync with the price action!! The remaining price action between the end of the MA and the last data point is you time delay or lag in the filter. There should be enough info in terms price data for you to extend the MA to end of the price action, or you can simply use various curve fitting techniques to help you do this.By doing this, you can now virtually toss away all the other lagging indicators you are using like adx etc. From you modified Bollinger chart, you are now able to improve the timing of your pivots, as now price is oscillating from one band (upper)&nbsp; to another (lower) You now have just one tool that may aid you to trade forward timeframes. One caveat though, you need to be able to choose the correct span (dominant cycle) of your price action.Price itself is the best indicatorCheers</blockquote>

[QUOTE="wavepicker, post: 78388, member: 2120"] [b]Re: Coyotte[/b] Hi Coyotte, Firstly I would like to thank you for at least being brave enough to post some charts, and a description of how you perhaps go about some of your trades. Wish more posters would do the same on this forum. I was however under the impression you do not use moving averages of any type in your comments of post #73 in the "Re: Improving Chart Analysis Thread" Refer to the comments from that post below: Not trying to criticize here, rather just talking from my own experience using Bollinger Bands years ago. I found them to be of very little use in my trading If you look at what Bollingers are and what you are trying to acheive with them, it's a complete waste of time as they are lagging indicators and will give you very little "earling warning" of anything. What is a moving average?? It is simple cutoff filter. Depending on the span chosen the resulting trace or line is a representation of the sum of all the cycles greater than the span chosen. There is only one problem here, the relationship between the moving average and the data it smoothes is NOT the one that is shown on stock price charts. In fact, the moving average data point plotted in association with the last price datum should be associated with a price datum half the time span of the average in the past!!!! A moving average becomes a great deal more useful if plotted correctly. To do so, the theoretical time lag of such an average must be taken into account. How do you do this? Move the moving average back in time half the span you have chosen. In doing so you will see that MA is now in sync with the price action!! The remaining price action between the end of the MA and the last data point is you time delay or lag in the filter. There should be enough info in terms price data for you to extend the MA to end of the price action, or you can simply use various curve fitting techniques to help you do this. By doing this, you can now virtually toss away all the other lagging indicators you are using like adx etc. From you modified Bollinger chart, you are now able to improve the timing of your pivots, as now price is oscillating from one band (upper) to another (lower) You now have just one tool that may aid you to trade forward timeframes. One caveat though, you need to be able to choose the correct span (dominant cycle) of your price action. Price itself is the best indicator Cheers [/QUOTE]

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