Replies to post #762 on Extreme Deviation Automatic Price Targeting - "X_D (BTC-USD)

[Rien]

Hmmm, Interesting.

1. One things get this close, I'd like to see some test results first. I am a bit mathematically challenged so I don't see the immediate difference. If however you get results better or worse than with using the SMA, then we have a basis to build further hypotheses on.

2. If the whatever-MA mimics the SMA, why bother with whatever-MA's?

3. Actually XDEV does not use the SMA. It uses the mid-points between daily high and low. And that is how it should be. Would you use the same price for calculating the whatever-MA?



Best,
Rien.

[Qarel]

Increase the EMA time span used, to the point that it's now decreased sensitivity most closely mimics the movements and deviations of the 12 day SMA. (TADA!!!)

No, no TADA here!! Once you have an EMA that moves more or less with the a 12 day SMA, you get somewhere in the 50 day range, and the overall movement is reduced a lot, compared to the SMA. And if you just search for a minimal overal difference, the EMA would react too fast.

Try it on
http://stockcharts.com/def/servlet/SC.web?c=QLGC,uu[h,a]daolyyay[pb12!c40][vc60]<i&pref=G

(Perhaps you'll need to reconstruct the link with cutting and pasting.)

The red 40 day EMA already reacts faster than the blue 12 day SMA.

Regards,

Karel