fortyfour
189 posts
msg #96189
- Ignore fortyfour
modified |
9/11/2010 8:22:42 PM
Living in this tight TZA 5 day trading range . Which way will it go .......I have no opinion even though I sense and see the
bullish sentiment on the DOW etc... Rooting for European bank issues to prevail......on Monday.
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heypa
283 posts
msg #96192
- Ignore heypa |
9/12/2010 1:24:06 PM
I'm confused.How can you use DMA in real time.Seems to me that when looking at the chart historically you have to know that the DMA values depicted in the past are not the same as they were when that day was the last day on the hard right edge of the chart.They have been changed by the price action of the 5 following days. This becomes obvious if you look at any chart with a large movement in any of the subsequent 5 following days.
I don't really know how stock fetcher fills in the blank days from the displaced average to the present.
Can anyone help me understand the logic of using DMA for trading decisions?
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four
5,087 posts
msg #96193
- Ignore four |
9/12/2010 2:33:26 PM
http://www.thailandinvestorclub.com/download/E-Book/JOE%20DiNapoli%20,%20%20-%20Trading%20With%20DiNapoli%20Levels.pdf
Perhaps page 293 helps?
Joe DiNapoli seems to be "THE" guy for DMA.
HTH
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tomm1111
202 posts
msg #96195
- Ignore tomm1111
modified |
9/12/2010 3:38:11 PM
I think the DMA will change daily until the offset value is reached. In this case -5. I believe a moving average is used looking forward to fill in the DMA value to current day. See example below.
http://help.stockfetcher.com/sfhelp/?id=100315&isiframe=&isiframe=
The high in comparison to the DMA 5 days and beyond may not be the same as current day. Meaning the entry signals specified may not be reliable. (The stoch crossover would still be valid but not the high less than DMA.) Please correct me if I am wrong.
One way to verify would be to write down the DMA value every day. After six days, compare the current day DMA with what you have wrote down.
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fortyfour
189 posts
msg #96197
- Ignore fortyfour |
9/12/2010 3:50:18 PM
I like it....thats all.
I spend zero time on the derivation of indicators.
To me it is just a visual thing.....For a couple/(few) days the entire day bars are below the indicator lines.
I have tried many...many indicators to find oversold setups and honestly dont care which one I use as they are all the same.
I am / was aware of the past threads howling over this ridiculous indicator.
To each his own......
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heypa
283 posts
msg #96205
- Ignore heypa |
9/12/2010 11:14:24 PM
Four...Good grief! Nowhere in the referenced book in any proposed trading methods described does the author use a displaced backward moving average. It was an interesting read however. Thank you.
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heypa
283 posts
msg #96206
- Ignore heypa |
9/12/2010 11:19:24 PM
Tomm1111 Thanks for the reference. The method used is how i suspected from the appearance of the charts. I just didn't bother to look it up.
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fortyfour
189 posts
msg #96210
- Ignore fortyfour |
9/13/2010 9:27:10 AM
Will be selling TZA..... for a loss .....on a pullback if available at 10:30ish.....
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