Smoothing Data With Less Lag by Patrick G. Mulloy
ARTICLE SYNOPSIS ...Smoothing Data With Less Lag by Patrick G. Mulloy
Last time, Mulloy discussed basic moving averages, introduced a new filter called DEMA1 and demonstrated a method with which to utilize exponential moving averages. Mulloy also explained how this new filter could be used in the moving average convergence/divergence (MACD) indicator. Now, Mulloy summarizes with more filtering techniques for the MACD and trading the Nasdaq.
Two opposing properties are always at work in the standard moving average smoothing used in technical
analysis, increasing the moving average (MA) length to cull more rando...