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Moving Average Question

  • #1
  • First Post: Edited Sep 22, 2006 8:26am Sep 21, 2006 1:42pm | Edited Sep 22, 2006 8:26am
I trade on the daily charts and use a 200ema. Sometimes the entire ema line will shift several pips away from it's original level.

I backtest quite a bit. Sometimes when I go back to re-test, I find that the ema has shifted up or down even though I didn't change the settings. Does anyone know what causes this?

Today for example, my 200ema in the CHF on daily charts (mediun price HL/2) is 1.2505. On my laptop downstairs it is 1.2493 with the same settings.

Any help would be appreciated.
  • #2
  • Sep 21, 2006 2:12pm Sep 21, 2006 2:12pm
That's interesting that it varies that much on a long EMA like that. I don't think this should make a difference but are the numbers of bars back on both of your computers the same? In other words, do both charts show the past, say 500, price bars? Even thought the EMA is supposed to only be taken from the last 200 bars that for some reason may make a difference. Or, is there a spike on one of the charts that is showing on the other?
  • #3
  • Sep 21, 2006 2:39pm Sep 21, 2006 2:39pm
How can you tell how many bars back the MA is reading? Is there a setting for that?

Thanks for the info.
  • #4
  • Sep 21, 2006 3:22pm Sep 21, 2006 3:22pm
Quoting Zach
How can you tell how many bars back the MA is reading? Is there a setting for that?

Thanks for the info.
The number of bars back a moving average takes into account is the period setting on the MA. If you're using a 200 MA, its using the last 200 bars to calculate the current value. The only way the MA value can change is on the current bar. Make sure the candle has closed, and then only will the value remain constant. But, realistically, if you're using a 200 period MA, even the current candle flucuating isnt going to change it much.

If you're looking at closed candles and varrying MA values, the only thing I can think of is a difference in price feeds. Or of course different settings.
  • #5
  • Sep 21, 2006 9:09pm Sep 21, 2006 9:09pm
Quoting twinchell
The number of bars back a moving average takes into account is the period setting on the MA. If you're using a 200 MA, its using the last 200 bars to calculate the current value. The only way the MA value can change is on the current bar. Make sure the candle has closed, and then only will the value remain constant. But, realistically, if you're using a 200 period MA, even the current candle flucuating isnt going to change it much.

If you're looking at closed candles and varrying MA values, the only thing I can think of is a difference in price feeds. Or of course different settings.

Thanks for the feedback. It is hard to describe but the entire 200ema line has shifted. One day, the line is at one level and the next, the whole line has shifted 15-20 pips. I've seen this several times while backtesting. Does anyone know what causes this? Could it have anything to do with me changing time frames while back-testing? This is when I've seen the MA shift.
  • #6
  • Sep 21, 2006 10:17pm Sep 21, 2006 10:17pm
That could be a problem. You see, if you have a 200 MA on a daily chart it is using the last 200 DAYS to calculate the current MA value. If you have a 200 MA on an hourly chart, it is using the last 200 HOURS to calculate the current MA value. These two calculations are completely different.
  • #7
  • Edited 7:56am Sep 22, 2006 7:29am | Edited 7:56am
I understand that the MA will look different in different time frames. What I meant was that when I went to a shorter time frame, then came back to the daily, the MA on the daily shifted. I've called several friends to check what their 200ema value is and they all have the same value as each other but different from mine.


For instance, this morning my 200ema on the USD/CHF is 1.2503. Everyone else has 1.2491 and we all have the same setups as far as I can tell. A few days ago, my 200ema values were the same as everyone elses. The whole line shifted upward for some reason.

I appreciate your input.
  • #8
  • Sep 22, 2006 8:03am Sep 22, 2006 8:03am
double, triple and quadruple check the settings.

Remove all other indicators EAs and crap off the chart just in case there is a conflict.

Update MT4 to the latest build 196 was buggy, do this on both machines.

but you've probably already done this, but anyway.

- save all your templates, profiles, indicators and reinstall MT4

- virus scan your computer

but you've probably already done this.

after that I don't know which is probably where you are at now.- then I would put my attention on something else for a while. the answer will usually turn up.
  • #9
  • Last Post: Sep 22, 2006 8:18am Sep 22, 2006 8:18am
Minute,


Thanks for the help. No solutions yet. It might have something to do with how many bars back the 200ema is reading. Perhaps it is reading a different number of bars than other setups.
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