Smoothing Techniques For More Accurate Signals by Tim Tillson
ARTICLE SYNOPSIS ...Smoothing Techniques For More Accurate Signals by Tim Tillson
More sophisticated smoothing techniques can be used to determine market trend. Better trend recognition can lead to more accurate trading signals. Here's how.
After studying his first stock chart, the novice technician is most likely to learn next about moving averages. This is a reasonable progression. First, moving averages are easy to understand. The simple moving average is just the average of a given number, which we will refer to as n, of previous closing prices, recalculated each
day at the close. And second, technicians u...