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DislikedLong GBP/USD at 1.998
Short USD/JPY at 111.95 I got in maybe a little late.
PeteIgnored
DislikedLenoxer,
... More times than not I set it at 100... I posted an entry by Alan Hull himself expalining how he uses his MA on the other thread. Here it is again.
Alan Hull
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posted on 7-9-2004 at 03:30 AM http://www.stockmeetingplace.com/for...ilver/edit.gif http://www.stockmeetingplace.com/for...lver/quote.gif HMA Construction...
The HMA is not that closely related to linear regression - the square root of the sum of the squares, etc. It is designed along geometric lines to remove lag without having to shorten the period and compromise smoothing. Hence, when compared to a line of linear regression of the same period, the HMA has superior smoothing.
HMA Application...
Because the HMA was designed to remove lag, don't use it to generate crossover trading signals. Instead you trade the turning points of the HMA...as it turns up - buy and as it turns down - sell. I actually prefer to use 2 separate HMAs with different periods - one for entry and one for exit. Tune the periods by backtesting on each financial instrument you wish to trade, ie. curve fit it in each case. Apply it to daily or weekly charts...it really doesn't matter which timeframe you use it over.
Enjoy,
Alan HullIgnored