Analysis and Trading based on Envelopes, Waves, Cycles

Quoting parisboy

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{quote} aptx read again attentively Profit Magic Chapter 3 pages 62-65 - The significance of Moving Average How to plot and Interpret Moving Average properly and test on charts what is written

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Quoting aptx

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{quote} Thanks for pointing out. Read the sections in Ch 3. Slightly clear that a MA lets say 16 is suppressing / smoothing most fluctuations below / upto 16 and allowing all other cycles (32-64-128-256) to come through. So the question again remains- if 16 turns up, are 32-64-128-56 also turning up ? Intuitively it does not seem to be the case since (even visually) one can see that even if 16 turns up the bigger averages 32-64-etc are still in a downward slope and will take time to turn up. In the mean time 16 also turns down (after its upmove)...

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Quoting parisboy

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{quote} So the question again remains- if 16 turns up, are 32-64-128-56 also turning up ? No but they turn progressively first 16 , then 32 , then 64 etc building a Pivot (a Low or a Top) I call this phenomenon PROPAGATION . You can observe that the CMA's make their Lows very close from each other . That is what Hurst labels as "Nest of Lows"

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Quoting aptx

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{quote} Thank you !!. What used to confuse me was the intermediate tops/ bottoms formed by a MA - see MA 16 in chart attached. Each time (see marked section) one is tempted to conclude that the average has bottomed and now all bigger MAs will also eventually turn up but that does not happen. Price continues to fall. So is it true that the smaller MA is showing the turn in all bigger MAs ? {image}

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