WHY DO YOU USE INDICATORS THAT...

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TheRumpledOne
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WHY DO YOU USE INDICATORS THAT...

Postby TheRumpledOne » Tue Oct 29, 2013 9:00 pm

WHY DO YOU USE INDICATORS THAT CHANGE VALUES WHEN PERIOD CHANGES?

http://youtu.be/EA9zFPfqAhA
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Postby PebbleTrader » Tue Oct 29, 2013 11:52 pm

I think people are more easily fooled due to standard time frames, with a limited choice of like M5, H1, W1, etc....

To test the insanity, use offline custom charts and apply the indicator to M1, M2, M3, M4...M45...M67...M88...etc. and watch the values change!
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Postby PebbleTrader » Wed Oct 30, 2013 12:11 am

MightyOne uses these types of indicators to impress women...so I guess they do have "some" value :)
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Postby Jalarupa » Wed Oct 30, 2013 9:37 am

Indicators that change price and those based apon a fixed price serve a simular function...

They give traders the area's or 'zones' that they may trade away from, or towards to...\\depnds on your level of experience and frame of mind//

Economists also like to place a lot of weight on moving averages to gauge longer term Market sentiment...

50SMA Closing under 200SMA = Death Cross

Personally I like the 108LWMA as it likes to reject price on all time frames... Its 'flat enough' to be considered a 'horizontal line' if price hits it,
and then you just apply the same close above close under logic...

I've been playing around with some older indicators (seems they don't make em like they used to)
and I've just developed this way of looking at daily price action. Still in Alpha...

Pro may like this... But anyway, here is a combo of a 108LWMA, Daily Hi/Low/Mid,
Din Fibs (which is an annoying indicator as it keeps crashing my system - But it creates the High and Low Channel),
and one or two TRO indi's for Time and Prices...

Image

Image

Image

Image

Image

Image

So yeah I totally see your point TRO...
The lines change...
And from a chartists point of view it frustrates the bejeezuz out of me because I can't code a little alarm that goes ting everytime
a MA gets hit (or within x pips of) on a multiple time frame
(because they all have some relevance) to draw my attention to it...
It literally means I have to keep flipping through the charts and
noting where price is relative to these key levels being created by the inidcator...
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Postby newscalper » Wed Oct 30, 2013 11:34 am

The answer to the question is simple.

A MA is based upon the period you're looking at so the 50ma on the 1min chart is calculated from 50x1 minute periods. of course the value of the indicator will change if you up the tf to 5 min as it will now calculate based on 50x5 minute periods.

However if you use a MTF MA and set it to 50ma x 1minute it will display the same value no matter what time period chart you look at because it will always be calculating from the same point data value acquired from the 1minute chart.


As to there being magical MA values...err....BS
:roll:

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Postby PebbleTrader » Wed Oct 30, 2013 2:10 pm

When you have near infinite time frames, M1, M2, M3, M4, M5...M67...M99...

and

Near infinite bars for calculations, 3MA, 5MA, 15MA, 50MA, 88MA, 100MA, 111MA, 187MA...

You get a massive variety in values.

The further you get away from 1 bar, the more worthless the values become.

A 250 bar MA is more worthless than a 249, a 249 is more worthless than a 199, a 199 is more worthless than a 150, a 150 is more worthless than a 88, a 88 is more worthless than a 13, a 13 is more worthless than a 3...
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Postby PebbleTrader » Wed Oct 30, 2013 2:16 pm

For bar calculations I rarely go beyond 3 bars, usually just 1 or 2 bars.

If I do use more than 3 bars it's because I'm doing statistical calculations and in need of a larger sample size.
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Postby PebbleTrader » Wed Oct 30, 2013 2:20 pm

I always ask a very important question when something is placed on my chart, either from an indicator or manual...

"Does this add value or increased insight?" If it doesn't add anything from what is already perceivable on the price chart, it get's removed.

99% of the time I remove things I try out.

It's a very rare occasion when I actually adopt an idea.
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Postby Jalarupa » Wed Oct 30, 2013 2:22 pm

Yeah I chose 108 because it means something to me... its the most perfect number in existance...

Imagine that...

Other than that, not much more... Oh and I also like fibs... something about the natural uniformity just gets me going... :P
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Postby PebbleTrader » Wed Oct 30, 2013 2:53 pm

I think it's important not to fall in love with ideas unless they offer greater insight. If 108 offers more insight than any other combination for YOU, than that's the best you can do right now. I would encourage always seeking out better and better ways of doing things and rejecting old ideas as new ideas become more valuable...progress.

Begin with the end in mind.
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