MDA - Market Direction Analysis

[augieboo]

Jim, here are some time-frame averaging/smoothing ideas I've picked up lately.

1. Weighted Averaging of Varied Timeframes

Create a basic indicator in four time frames, e.g., a stochastic in 10, 20, 30, and 40 periods.

Smoothing Methods:

-- Neutral Weighting = (10 + 20 + 30 + 40) / 4

-- Front Weighting = [10 + (2x20) + (3x30) + (4x40)] / 10

-- Back Weighting = [(4x10) + (3x20) + (2x30) + 40] / 10

2. Weighted Moving Averages:

Take any indicator and average it as follows: (Note "d" = "day")

[d1 + (2xd2) + (3xd3) + (4xd4)] / 4

Use any number of days you want. This works in reverse as well, depending on where you want to place more emphasis.

3. Exponential Moving Averages

5% 20 day EMA (Excel format)

=(((sum(d1:d20))/20)*.95)+(.05*d20)

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Re: Intermediate Trend Indicator

What is your definition of an intermediate trend?

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Re: Your multiple stochastic thingie

Are you tossing it intraday data?


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