They are all equally useful and all equally useless. They are inventions of people trying to find a magic formula thinking that the more complicated they make it the closer they can get to profit.
DislikedThey are all equally useful and all equally useless. They are inventions of people trying to find a magic formula thinking that the more complicated they make it the closer they can get to profit.Ignored
DislikedI have proven myself.
I have no further need for trial and error.
I have no fruther need for education.
I have proven my worth with a 4.0 GRADE POINT AVERAGE.
Unless you want to pay for my college, be happy with my 4.0 GPA!Ignored
DislikedHi everyone. I have been thinking about the reason(s) behind our use of MOVING AVERAGES. Why do we use the parameters we use etc...?
Why do you use SMA instead of EMA,SMMA or WMA? And what is a EMA or SMA ( I don't mean the full of the abreviation), actually...what does it do?Ignored
why slow EMA, fast EMA and MACD SMA? Why is MACD not available in Fast and slow (SMA,SMMA or WMA)?
DislikedWhat are you tyring to achieve using SMA, EMA, WMA or even SMMA? What are these tools really designed for/to achieve etc...?
DislikedMACD is moving average convergence divergence.
You don't know the purpose for MACD, then you need real education.Ignored
DislikedHope this is what you were looking for.
DislikedThey are just filters. A way to place a visual clue on a chart to provide some insight into what the markets are doing.
DislikedAt last someone of value!
Almost and you are getting me excited. thanks for the link.
so why does EMA gives additional weight to newer candles and what is/are the EFFECT(S)?
I don't understand what you mean by JUSTIgnored
DislikedThe effects with ema is a moving average line that responds quicker to rapid market movements. A good way to see this is to take a 100 sma, 100 smma, 100 ema and place them all on a chart in different colors. Find some point where there is decent price movement and watch how each responds.
Sorry, the just part was probably more of a personal opinion. It's more of how I see them being used.Ignored
About MACD, IS the fast and slowEMA smoothed by the SMA? and why?Ignored
DislikedThe DIFFERENCE between the fast and slow EMA's is smoothed by the SMA. As I explained previously, the difference between the EMA's is relatively noisy because EMA's are used, and therefore the resultant signal requires additional smoothing. Its just a compromise.
As for your timeframe question, a 10 period SMA on a 1 hour chart is based on the last 10 hours data. So if you want the same thing on a 5 minute chart, you'd use a 120 period SMA (120 5 minute bars are equal to 10 hours)
This approach works for SMA's, but of course it wont work with...Ignored
Dislikedjust tried what you said and it worked only with a 6pip diff but..... it worked.
Assuming you use a 12,26,1 MACD, are you smoothing the 12 and 26EMA with 1SMA?Ignored
DislikedMissing bars on the 5 minute timeframe might account for the 6 pip difference, and you'll ocassionally find with some brokers that the highs and lows taken from the 5 minute timeframe dont necessarily match up with the highs and lows on the wicks of candles in the longer timeframes !, but its usually near enough.
Regarding the MACD, yes, thats exactly right. You are smothing the difference between the 12 and the 26 EMA. So in an uptrend, the 12 will be above the 26, and the difference between them will be positive, and in a downtrend, the 12...Ignored