Intelligence is the ability to adapt to change. -- Stephen Hawking
- Joined Sep 2015 | Status: ob-la-di, ob-la-da, life goes on... | 3,078 Posts
Intelligence is the ability to adapt to change. -- Stephen Hawking
- Joined Sep 2015 | Status: ob-la-di, ob-la-da, life goes on... | 3,078 Posts
Intelligence is the ability to adapt to change. -- Stephen Hawking
- Joined Sep 2015 | Status: ob-la-di, ob-la-da, life goes on... | 3,078 Posts
GBP/JPY @ D1: Buy
Intelligence is the ability to adapt to change. -- Stephen Hawking
- Joined Sep 2015 | Status: ob-la-di, ob-la-da, life goes on... | 3,078 Posts
The chart image summarizes the relative position of an exchange rate relative to its performance over the last year. The yellow background indicates the square dimension of the chart. The orange dot indicates today's position relative to the high (top of the chart) and low (bottom of the chart) of the FX index during the last 365 days. So if the orange dot is close to the top, the currency is close to its highest valuation. If the orange dot is close to the bottom, the currency is near its lowest valuation. The blue bars indicate the distribution of valuations over the course of one year. The span between high and low valuation is divided into ten ranges (ie, deciles). Then the number of days during which the currency's valuation has been in each of these deciles is counted. The number of days is proportional to the width of each of the ten blue bars. Thus the position of the orange dot relative to the width of the blue bars indicates if the current valuation is a relatively common event or a relatively rare event. For example, if the bulk of valuations has been in the lower deciles, and the orange dot is near the top where the bars are narrow, the currency has recently moved up sharply. The chart ("FX conifers") is a simple method of visually summarizing the performance of a currency over the time period of one year. One useful feature of this chart is that it automatically adjusts for the different volatility of currencies, as the span between a one-year high and one-year low is a reflection of a currency's volatility.
☝ This is not a fundamental determinant. Users are advised to read them with considerable caution. Use this at your own risk. I disclaim all liability for direct or consequential damages resulting from your use of this information.
☝ This is not a fundamental determinant. Users are advised to read them with considerable caution. Use this at your own risk. I disclaim all liability for direct or consequential damages resulting from your use of this information.
Intelligence is the ability to adapt to change. -- Stephen Hawking
- Joined Sep 2015 | Status: ob-la-di, ob-la-da, life goes on... | 3,078 Posts
Intelligence is the ability to adapt to change. -- Stephen Hawking
- Joined Sep 2015 | Status: ob-la-di, ob-la-da, life goes on... | 3,078 Posts
T3 based VWAP
✔ T3 by Tim Tillson
Tim Tillson is a software project manager at Hewlett-Packard, with degrees in Mathematics and Computer Science. He has privately traded options and equities for 15 years.
"Digital filtering includes the process of smoothing, predicting, differentiating, integrating, separation of signals, and removal of noise from a signal. Thus many people who do such things are using digital filters without realizing that they are; being unacquainted with the theory, they neither understand what they have done nor the possibilities of what they might have done."
This quote from R. W. Hamming applies to the vast majority of indicators in technical analysis. Moving averages, be they simple, weighted, or exponential, are lowpass filters; low-frequency components in the signal pass through with little attenuation, while high frequencies are severely reduced. "Oscillator" type indicators (such as MACD, Momentum, Relative Strength Index) are another type of digital filter called a differentiator. Tushar Chande has observed that many popular oscillators are highly correlated, which is sensible because they are trying to measure the rate of change of the underlying time series, i.e., are trying to be the first and second derivatives we all learned about in Calculus.
We use moving averages (lowpass filters) in technical analysis to remove the random noise from a time series, to discern the underlying trend or to determine prices at which we will take action. A perfect moving average would have two attributes:
It would be smooth, not sensitive to random noise in the underlying time series. Another way of saying this is that its derivative would not spuriously alternate between positive and negative values.
It would not lag behind the time series it is computed from. Lag, of course, produces late buy or sell signals that kill profits.
The only way one can compute a perfect moving average is to know the future, and if we had that, we would buy one lottery ticket a week rather than trade!
✔ T3 by Tim Tillson
Tim Tillson is a software project manager at Hewlett-Packard, with degrees in Mathematics and Computer Science. He has privately traded options and equities for 15 years.
"Digital filtering includes the process of smoothing, predicting, differentiating, integrating, separation of signals, and removal of noise from a signal. Thus many people who do such things are using digital filters without realizing that they are; being unacquainted with the theory, they neither understand what they have done nor the possibilities of what they might have done."
This quote from R. W. Hamming applies to the vast majority of indicators in technical analysis. Moving averages, be they simple, weighted, or exponential, are lowpass filters; low-frequency components in the signal pass through with little attenuation, while high frequencies are severely reduced. "Oscillator" type indicators (such as MACD, Momentum, Relative Strength Index) are another type of digital filter called a differentiator. Tushar Chande has observed that many popular oscillators are highly correlated, which is sensible because they are trying to measure the rate of change of the underlying time series, i.e., are trying to be the first and second derivatives we all learned about in Calculus.
We use moving averages (lowpass filters) in technical analysis to remove the random noise from a time series, to discern the underlying trend or to determine prices at which we will take action. A perfect moving average would have two attributes:
It would be smooth, not sensitive to random noise in the underlying time series. Another way of saying this is that its derivative would not spuriously alternate between positive and negative values.
It would not lag behind the time series it is computed from. Lag, of course, produces late buy or sell signals that kill profits.
The only way one can compute a perfect moving average is to know the future, and if we had that, we would buy one lottery ticket a week rather than trade!
Intelligence is the ability to adapt to change. -- Stephen Hawking
- Joined Sep 2015 | Status: ob-la-di, ob-la-da, life goes on... | 3,078 Posts
Intelligence is the ability to adapt to change. -- Stephen Hawking
- Joined Sep 2015 | Status: ob-la-di, ob-la-da, life goes on... | 3,078 Posts
Intelligence is the ability to adapt to change. -- Stephen Hawking
- Joined Sep 2015 | Status: ob-la-di, ob-la-da, life goes on... | 3,078 Posts
Intelligence is the ability to adapt to change. -- Stephen Hawking
- Joined Sep 2015 | Status: ob-la-di, ob-la-da, life goes on... | 3,078 Posts
Intelligence is the ability to adapt to change. -- Stephen Hawking
- Joined Sep 2015 | Status: ob-la-di, ob-la-da, life goes on... | 3,078 Posts
Intelligence is the ability to adapt to change. -- Stephen Hawking
- Joined Sep 2015 | Status: ob-la-di, ob-la-da, life goes on... | 3,078 Posts
Intelligence is the ability to adapt to change. -- Stephen Hawking
- Joined Sep 2015 | Status: ob-la-di, ob-la-da, life goes on... | 3,078 Posts
Intelligence is the ability to adapt to change. -- Stephen Hawking