More Responsive Moving Averages by Joe Sharp,Ph.D.
ARTICLE SYNOPSIS ...More Responsive
by Joe Sharp,Ph.D.
Traders are resigned to moving averages being behind the
price action,but that needn't always be the case. Here's an
algebraic technique to make your averages more responsive
to price movement - and a better aid in decision--making.
Moving averages serve two main
purposes: to show the underlying
security value after noise has
been filtered out and, implicitly,
to delay decisions to reduce
whipsaws. However, that delay
frustrates traders who must make
decisions based on what is
happening right then and there.
You can fix that. I'll show you...