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Article Archive For Keyword: Averages
DownloadA Look At Volume-Weighted Moving Averages
ARTICLE SYNOPSIS...There are various moving average techniques, but volume isn't usually a part of its analysis. Except for this one method.
Adapting Moving Averages To Market Volatility by Tushar S. Chande, Ph.D.
ARTICLE SYNOPSIS...Adapting Moving Averages To Market Volatility by Tushar S. Chande, Ph.D. If a market is active, it has volatility: that cannot be avoided. And because the market is continuously changing, an indicator that attempts to predict market activity must itself
Adaptive Moving Averages
ARTICLE SYNOPSIS...The biggest challenge for any trader is identifying turning points in price movements. You never know if you'll end up getting whipsawed out of a trade. Here's one way to avoid those whipsaws
Applying Moving Averages by John Sweeney
ARTICLE SYNOPSIS...Applying Moving Averages by John Sweeney The moving average, one of the first technical methods that novice traders study, can be applied to your favorite markets. Here are its strengths and weaknesses. It's commonplace to honor simplicity but to simu
Are The Averages in Gear? by Richard L. Evans
ARTICLE SYNOPSIS...Are The Averages in Gear? by Richard L. Evans What is Dow theory really indicating when the industrial and transportation averages are out of sync? Here's a Dow theory specialist to clarify. One of Dow theory's main tenets and the basis of much modern-
Back To Averages by John Sweeney
ARTICLE SYNOPSIS...Back To Averages by John Sweeney Getting back to the subject of averages skimming tops and bottoms of price curves (Settlement, STOCKS & COMMODITIES, February 1991), two readers, C. Skelley of Tucson, AZ, and John Ehlers of Goleta, CA, wrote to explain
Chasing The Trend With Moving Averages
ARTICLE SYNOPSIS...This tool is a reliable and traditional technical indicator with any number of variations.
Combining Guppy Averages With A Winning Trading System
ARTICLE SYNOPSIS...Filtering your trading system's output with Guppy moving averages can help keep you on the right side of most major market moves.
Concentric Containment Moving Averages
ARTICLE SYNOPSIS...By using a series of moving averages, we can study price action within the timeframe and look for clues to the direction ahead
Confirmation Comes To The Averages
ARTICLE SYNOPSIS...While Dow theorists eagerly watched to see if the Averages would take out their May lows, recent closes beneath the July lows may already tell a bearish tale.
Confirming Averages
ARTICLE SYNOPSIS...What happens when the Dow industrials go where the transports fear to tread?
Day Trading The Averages by JOHN F. KEPKA
ARTICLE SYNOPSIS...Day Trading The Averages by JOHN F. KEPKA When Stock Index Futures trading with the Value Line contract was initiated at the Kansas City Board of Trade, futures traders suddenly gained the opportunity to trade the entire stock market. Large profitable m
Elastic Moving Averages by Christian P. Fries, Ph.D.
ARTICLE SYNOPSIS...Elastic Moving Averages by Christian P. Fries, Ph.D. Approximating the average price paid per share can generate a very responsive moving average. What if the period of your average fluctuated with volume? You'd have an elastic volumeweighted moving av
Exponentially Smoothed Moving Averages by Donald R. Lambert
ARTICLE SYNOPSIS...Exponentially Smoothed Moving Averages by Donald R. Lambert If you were to do a survey of all the many trading systems that are in common usage, it is very likely that two calculation methods would be found to be leading the pack by a great margin. They
FILTER PRICE DATA: Moving Averages vs. Exponential Moving Averages by Jack K. Hutson
ARTICLE SYNOPSIS...FILTER PRICE DATA: Moving Averages vs. Exponential Moving Averages by Jack K. Hutson In the process of collecting stock or commodity time series data, such as daily closes, we lose a significant quantity of information. We are examining a single point (
FILTER PRICE DATA: Moving Averages vs. Exponential Moving Averages by Jack K. Hutson
ARTICLE SYNOPSIS...FILTER PRICE DATA: Moving Averages vs. Exponential Moving Averages by Jack K. Hutson In the process of collecting stock or commodity time series data, such as daily closes, we lose a significant quantity of information. We are examining a single point (
Fractal Adaptive Moving Averages by John F. Ehlers
ARTICLE SYNOPSIS...Stocks & Commodities V. 23:10 (81-82): Fractal Adaptive Moving Averages by John F. Ehlers We all want to eliminate bad whipsaw trades. Here's a weapon you can add to your arsenal of technical indicators for just that purpose. The objective of using fil
How To Trade Price Respect For Moving Averages
ARTICLE SYNOPSIS..."Buy on dips and sell on rallies" is good advice, but it leaves the question of how? A simple set of indicators can show you where "price respect" is and how to trade dips in price.
IBM Consolidates Below Key Moving Averages
ARTICLE SYNOPSIS...IBM is stalling near a key long-term moving average, but has yet to show strength that would indicate a bullish reversal.
Keep It Simple With Long-Term Moving Averages
ARTICLE SYNOPSIS...Need a basic, no-brainer means of determining the intermediate- to long-term trends of your favorite markets? Here's a handy tool you can start using today.
MESA Adaptive Moving Averages by John F. Ehlers
ARTICLE SYNOPSIS...MESA Adaptive Moving Averages by John F. Ehlers What if you combined the power of maximum entropy spectral analysis with the Hilbert transform's ability to discern phase change? The MESA adaptive moving average (MAMA) adapts to price movement in a new
Market trends in composite averages Wyckoff method of trading stocks part 3 by Jack K. Hutson.
ARTICLE SYNOPSIS...Market trends in composite averages Wyckoff method of trading stocks part 3 by Jack K. Hutson. By looking at Vertical Line charts of composite averages using Wyckoff analysis, you can learn where the market is taking your individual and group stock pick
Momentum and Simple Moving Averages
ARTICLE SYNOPSIS...Sometimes a stock's price will move so far away from its simple moving average (SMA) that the temptation is to trade in the opposite direction. The idea underlying these trades is that stock prices will always revert to their mean. Right? Maybe.
More Responsive Moving Averages by Joe Sharp,Ph.D.
ARTICLE SYNOPSIS...More Responsive Moving Averages 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
Moving Averages
ARTICLE SYNOPSIS...Moving Averages In our studies of stock or commodity time series data, i.e. a stream of successive daily closes (highs, lows, volume), we are constantly reminded of moving averages and their application. A moving average is one of the simplest and most
Moving Averages
ARTICLE SYNOPSIS...Understanding the basics can help you trade moving averages much more efficiently.
Moving Averages And Opportunity Costs
ARTICLE SYNOPSIS...Deciding on the use of particular moving averages (MA) depend on several factors, but there is definitely a trade-off between choosing a short-term over a longer-term MA, and vice versa.
Moving Averages And The Slingshot Effect by Bo Yoder
ARTICLE SYNOPSIS...Moving Averages And The Slingshot Effect by Bo Yoder Watch the bulls and bears battle for supremacy to determine market direction. Moving averages (MAs) are among the simplest and most effective tools in any trader's arsenal. They offer moving areas of
Moving Averages And Volume Reveal Strong Trades In Cotton
ARTICLE SYNOPSIS...Cotton is ginning up some serious profits in its current bull run, and using both volume and simple moving averages can show you when to enter and profit if you know how.
Moving Averages Define Market Trends
ARTICLE SYNOPSIS...Moving averages are a simple way of defining the short-term, intermediate-term, and long-term market trends. The timing of these trends also help traders in determining how long these trends should last.
Moving Averages with Resistance and Support by Dennis L. Tilley
ARTICLE SYNOPSIS...Moving averages are a popular way to signal trends. Combine moving averages and the classic chart analysis of support and resistance for trading mutual funds. Most simple moving average systems require one or two additional confirmation signals to avoi
Moving Averages, First Principles by Brian J. Millard
ARTICLE SYNOPSIS...Moving Averages, First Principles By Brian J. Millard Don't quite understand moving averages, but think that you could benefit from using them? Here's how to understand and apply moving averages to identifying trends in stocks. Of all the technical in
Moving Averages: Long On Talk, Short On Action by Anthony Trongone, Ph.D.
Moving Averages: Some Finer Properties
ARTICLE SYNOPSIS...What is the difference between the 10-period of a five-period moving average and a 15-period moving average? Does the sum of moving averages equal the moving average of the sum? How does the smoothing of a ratio differ from the ratio of smoothing? How ca
Moving averages Part 1 by John Ehlers
ARTICLE SYNOPSIS...Moving averages Part 1 by John Ehlers Averages have long been recognized as the best estimator of a random variable. Traders use moving averages as trading signals or as components of trading systems, but the moving average characteristics are seldom de
Moving averages Part 2 Ehlers Leading Indicator (ELI) by John Ehlers
ARTICLE SYNOPSIS...Moving averages Part 2 Ehlers Leading Indicator (ELI) by John Ehlers Most technical indicators use a moving average of some kind, and this usually dooms the indicator to lag price. Some indicators use momentum, or rate of change, to generate a leading f
Moving averages and smoothing filters by John Ehlers
ARTICLE SYNOPSIS...Moving averages and smoothing filters by John Ehlers Moving averages are perhaps the single most widely used technical trading tool. While averages are important tools, let's face it--we don't need computers to calculate them. Traders were using moving a
Moving averages made simple by Heidi Schmidt
ARTICLE SYNOPSIS...Moving averages made simple by Heidi Schmidt Once a beginning chartist successfully learns trend identification and channel drawing (Stocks & Commodities, January 1988), moving averages are often the next technical tool to master. Moving averages may be
Muscle Up Those Averages
ARTICLE SYNOPSIS...Trading the currency markets means you need to be well aware of global macro and micro economic variables. But when it comes to trading these markets, simple is better. Find out more through this example of the EUR/USD currency pair.
Nonconfirmation Comes To The Averages
ARTICLE SYNOPSIS...Dow theory nonevent or not, the lack of confirmation between the transports and industrials in June provides the bears with hopes of a summer reversal.
On Moving Averages by John Sweeney
ARTICLE SYNOPSIS...It's been around forever, and it's a tried-and-true favorite. It's also the source of great frustration. How can anything end up as both? Here are the basics for using moving averages to identify the trend in the market. No technique is more frequently
Optimizing moving averages by Charles J. McGuinness
ARTICLE SYNOPSIS...Optimizing moving averages by Charles J. McGuinness One of the first techniques you'll come across in almost any book on technical analysis is moving averages. Moving averages are amazingly handy in predicting the movement of securities. By themselves,
Placing Stops With Moving Averages And Bollinger Bands
ARTICLE SYNOPSIS...Taking a stop too early is better than taking a loss. Using these two indicators could help.
Point & Figure And Moving Averages
ARTICLE SYNOPSIS...Last week, I wrote how I could have traded Nortel using point and figure charts. Here's a way to trade Nortel using two moving averages on a point and figure chart.
Point & Figure Moving Averages
Point & Figure Moving Averages
ARTICLE SYNOPSIS...Here's an instance where two are better than one.
Relative Strength Moving Averages
ARTICLE SYNOPSIS...You can use calculations of the relative strength of price, volume, and volatility to filter price movement and help define turning points. In this three-part series, we'll examine three applications of relative strength: the relative strength exponentia
Relative Strength Moving Averages Part 2
ARTICLE SYNOPSIS...Here in part 2 of this 3-part series, we explore the relative strength volume-adjusted exponential moving average
Relative Strength Moving Averages, Part 3
ARTICLE SYNOPSIS...Here in part 3, we explore the relative strength volatility-adjusted exponential moving average
SIDEBAR: Analysis and moving averages
ARTICLE SYNOPSIS...Analysis and moving averages Definition of terms used by the author when discussing indicators in the article ""Volume percentage ratio"". In interpreting any charted indicator, it is only the relative position of the plotted line that is important. ..
SIDEBAR: CALCULATING WEIGHTED MOVING AVERAGES
ARTICLE SYNOPSIS...CALCULATING WEIGHTED MOVING AVERAGES The first step for calculating a weighted moving average (WMA) is to decide the lookback period (n) and the alpha (a). For our example in sidebar Figure 1, we are using n = 8 and a = 0.6 to calculate the optimized we
SIDEBAR: EXPONENTIAL MOVING AVERAGES
ARTICLE SYNOPSIS...EXPONENTIAL MOVING AVERAGES Defining exponentially smoothed moving averages -- which, for most traders, would be a series of closing prices -- is simply another form of a moving average. ...
SIDEBAR: EXPONENTIAL MOVING AVERAGES
ARTICLE SYNOPSIS...EXPONENTIAL MOVING AVERAGES Defining exponentially smoothed moving averages -- which, for most traders, would be a series of closing prices -- is simply another form of a moving average. An exponentially smoothed moving average utilizes a smoothing consta
SIDEBAR: EXPONENTIAL MOVING AVERAGES
ARTICLE SYNOPSIS...EXPONENTIAL MOVING AVERAGES Defining exponentially smoothed moving averages -- which, for most traders, would be a series of closing prices -- is simply another form of a moving average.
SIDEBAR: How moving averages are computed
ARTICLE SYNOPSIS...SIDEBAR: How moving averages are computed Moving average are usually specified by two parameters. The first is the length of the moving average and is generally expressed in the same periodicity as the data. For example, if we have the daily price of th
SIDEBAR: TIME DELAY OF LINEAR EXPONENTIAL AVERAGES
ARTICLE SYNOPSIS...TIME DELAY OF LINEAR EXPONENTIAL AVERAGES Article Figure 2 indicates that if the price goes up linearly, after a while the exponential moving average will also be a straight line that is parallel to the original. For this to occur, there must be a const
SIDEBAR: Triangular moving averages
ARTICLE SYNOPSIS...SIDEBAR: Triangular moving averages Article Figure 1 represents a 20-period triangular moving average (P=20). By convention, the maximum weight for all values of P is 2.0. If P=20, the maximum weight 2.0 must be at the midpoint, time period 10. Incremen
Smoothing Data With Faster Moving Averages by Patrick G. Mulloy
ARTICLE SYNOPSIS...Smoothing Data With Faster Moving Averages By Patrick G. Mulloy Has the lag time of moving averages ever irritated you? Well, there is a way around it: a modified statistical version of exponential smoothing with less lag time than the standard exponent
Smoothing The Ride With Moving Averages by Edward Donie
Stocks above moving averages by Arthur A. Merrill, CMT
ARTICLE SYNOPSIS...Stocks above moving averages by Arthur A. Merrill, CMT The percentage of stocks above their moving averages has been tracked for a number of years by Investor's Intelligence, a weekly report that includes the number of New York Stock Exchange issues abo
The Average Age Of Averages
ARTICLE SYNOPSIS...Have you ever considered why you use 2/(n+1) as a smoothing parameter when using exponential moving averages? Here you will find a simple explanation.
The Basics Of Moving Averages by George R. Arrington, Ph.D.
ARTICLE SYNOPSIS...The Basics Of Moving Averages by George R. Arrington, Ph.D. Moving averages are one of the most common technical tools that technicians, both veteran and novice, may take advantage of. But for those novices, the concept may be somewhat confusing. What i
The Ins & Outs Of Moving Averages Part 1
ARTICLE SYNOPSIS...They are ubiquitous on price charts and an integral part of technical analysis. Do you know everything you should about using them?
The Ins & Outs Of Moving Averages Part 2
ARTICLE SYNOPSIS...They are ubiquitous on price charts and an integral part of technical analysis. Do you know everything you should about using them? Here in part 2, we go a little deeper into the topic of moving averages
The Three Moving Averages Forex Trading Strategy
ARTICLE SYNOPSIS...Here's a trading strategy you can use for trading high-volatility markets such as forex, cryptocurrencies, or stocks. It's based simply on three simple moving averages
Trade With Moving Averages by Colin Alexander
ARTICLE SYNOPSIS...Trade With Moving Averages by Colin Alexander Behold the moving average. Everyone takes it for granted without really thinking about it. But Colin Alexander, publisher of the Wellspring newsletter and hotline, thinks we should take a closer look. Movin
Trading Ranges With Moving Averages by John Sweeney
ARTICLE SYNOPSIS...Trading Ranges With Moving Averages by John Sweeney Using simple moving averages may seem like a straightforward approach to trading, but there are subtle techniques that can improve performance. A few months ago, I pointed out that moving averages ar
Trends And Moving Averages by Robert Nikifork
ARTICLE SYNOPSIS...How do you choose which length and type of moving average to use for chart analysis? Take a look. One commonly used technical indicator is the moving average (MA), which is plotted as a line connecting the average of closing prices over a lookback peri
Understanding Exponential Moving Averages by Raymond Rothschild
ARTICLE SYNOPSIS...Understanding Exponential Moving Averages by Raymond Rothschild Do you ever find yourself thinking that maybe you ought to try using the exponential moving average but find yourself intimidated into paralysis? Don't be. Let Raymond Rothschild be your gu
Using Moving Averages
ARTICLE SYNOPSIS...The idea behind using a moving average is to establish a smooth sequence in graphical terms.
Using Moving Averages To Trade Retracements
ARTICLE SYNOPSIS...Trading a price retracement amid an established trend can provide you with a low-risk, high-probability trading opportunity.
Using Multiple Moving Averages by Daryl Guppy
ARTICLE SYNOPSIS...Using Multiple Moving Averages by Daryl Guppy Moving averages, familiar to every technical trader, are used by most technicians to identify important trends. Here's a unique twist on using multiple moving averages as an early warning of trend reversals.
Variable-Interval Moving Averages by R.G. Boomers
ARTICLE SYNOPSIS...Variable-Interval Moving Averages by R.G. Boomers Time is the most difficult variable to capture in an indicator. Here's a way to have a responsive, adjustable-length moving average without a lot of high-level math. Simple moving averages are, perhaps,
Volume-Weighted Moving Averages And The P&F
ARTICLE SYNOPSIS...When crossovers and Xs together mark the spot.
Volume-adjusted moving averages by Richard W. Arms Jr.
ARTICLE SYNOPSIS...Volume-adjusted moving averages by Richard W. Arms Jr. A moving average line is just that. It smoothes price over time, reducing erratic, shorter-term swings to a smoother, more comprehensible line. Any changes in the parameters of the moving average li
WM: Using Moving Averages To Trade Retracements by Mike Moody, Ph.D.
Watching the 50- and 100-Period Moving Averages
ARTICLE SYNOPSIS...Are the 50-period and 100-period moving averages indicators to be watched when it comes to market indices?
Weighted Moving Averages
ARTICLE SYNOPSIS...The weighted moving average places a greater importance on the most recent data and provides another twist to using moving average indicators in your analysis.
Weighted Moving Averages by Thomas Hutchinson and Peter G. Zhang, Ph.D.
ARTICLE SYNOPSIS...Weighted Moving Averages by Thomas Hutchinson and Peter G. Zhang, PhD. The moving average is well known and much used in the field of technical analysis, but it also has a flaw: its lack of flexibility. But it need not be fatal. First-time STOCKS & COMM
Whipsaws, Linear Trends and Simple Moving Averages by Robert Wayman
ARTICLE SYNOPSIS...TRADING TECHNIQUES Whipsaws, Linear Trends And Simple Moving Averages by Robert Wayman How does whipsaw magnitude affect a simple moving average system? Here's a common solution for the problems of the SMA. Previously, we looked at cycles and found
Why So Many Moving Averages?
ARTICLE SYNOPSIS...So many to choose from...so little time.
Working Money: Confirming Averages by David Penn
ARTICLE SYNOPSIS...Working Money: Confirming Averages by David Penn DOW THEORY What happens when the Dow industrials go where the transports fear to tread? One of the original tenets of Dow theory, and one of the most misunderstood, is the notion that the averages must c
Working Money: Moving Averages by Dennis Peterson
Working Money: Volume-Weighted Moving Averages And The P&F by Paul Fell
Wrapping Moving Averages With Ribbons
ARTICLE SYNOPSIS...Most traders apply moving averages to detect price trends. Here's one way you can apply several moving averages at a time to better identify turning points, continuations, extreme highs and lows, and trading ranges.
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