An Enhanced Moving Average

[aparsai]

I have developed an Exponential Moving Average called Jagged EMA which accommodates volatility and EMA together. Visit Free Forex MQL Training - Combining Volatility and Exponential Moving Averages for more information about this EMA and download your free copy.

 

[A Dashing Blade]

Any trader who uses an indicator that s/he does not totally, fully and comprehensively understand is riding for a fall imo. This is, of course, impossible to achieve with a "bkack box" indicator.

 

[TheBramble]

I agree for all the old and obvious reasons.

But having developed yet another loser there are alternate methods for having it turn a copper or two....

 

[Lord Flasheart]

A jagged EMA as opposed to a smooth EMA,very interesting. Im in the process of developing a Tripple Salco EMA. It smooths out three MAs and has a salco at the end before entry.

 

[aparsai]

Any trader who uses an indicator that s/he does not totally, fully and comprehensively understand is riding for a fall imo. This is, of course, impossible to achieve with a "bkack box" indicator.

What I have developed is not a black-box. It is a combination of ATR and EMA, that simple.

Don't tell me that you know the formula behind every indicator. For example do you know how Parabolic SAR is calculated. It is quite popular and many traders use it, yet only a few know how it is actually calculated.

I think you need to see if the behaviour of an indicator matches your trading strategy and then decide to use it or not.

Thanks for your feedback.

 

[aparsai]

I agree for all the old and obvious reasons.

But having developed yet another loser there are alternate methods for having it turn a copper or two....

Thanks for the feedback.

 

[aparsai]

A jagged EMA as opposed to a smooth EMA,very interesting. Im in the process of developing a Tripple Salco EMA. It smooths out three MAs and has a salco at the end before entry.

I wish you luck. It would be interesting to see the end-result.

 

[TheBramble]

Thanks for the feedback.

OK if it's feedback you want. You seem a decent enough chap so I checked out your indicator.

It doesn't lend itself to any immediately obvious or easy interpretation nor does it at first pass, provide anything over and above other MA based inds, even with ATR thrown in. All inds are lagging (can’t be any other way) and this one looks like a combo SAR, X-MA type offering. I’m not sure I would have gone with dark colours for any lines given a lot of folk like to work with a black background.

If you’re up front and open about how you suggest people might trade it, you’ll have my attention.

If you suggest, as you do on your site, that only paying students get the lowdown, then I predict this thread is on for a fairly short run.

 

[aparsai]

OK if it's feedback you want. You seem a decent enough chap so I checked out your indicator.

It doesn't lend itself to any immediately obvious or easy interpretation nor does it at first pass, provide anything over and above other MA based inds, even with ATR thrown in. All inds are lagging (can’t be any other way) and this one looks like a combo SAR, X-MA type offering. I’m not sure I would have gone with dark colours for any lines given a lot of folk like to work with a black background.

If you’re up front and open about how you suggest people might trade it, you’ll have my attention.

If you suggest, as you do on your site, that only paying students get the lowdown, then I predict this thread is on for a fairly short run.

There is no doubt that all indicators are lagging - even if they claim they don't - as they are based on what has happened in the past. This is more obvious about MA. The logic behind this indicator was an attempt to incorporate the effect of volatility on an MA. This could lead to further opportunities but as of now, I do not want to suggest any trading strategies based on this. I am working on it and if I see any strategies that could be built on this indicator I would definitely suggest that.

I didn't get the last paragraph. If you are referring to the source code of the indicator, yes I usually do not share the source code with the public. But there is no strings attached to using the compiled version of the code, neither is the strategy behind it a very complex one. It is a combination of ATR and EMA.

 

[TheBramble]

I do not want to suggest any trading strategies based on this. I am working on it and if I see any strategies that could be built on this indicator I would definitely suggest that.

I assumed you had written the indicator in order to test a hypothesis you may have had about a trading strategy. No reason why you shouldn’t, but it seems a little ‘random’ to write an indicator THEN look for applications for it. Maybe it’s just me that does it the other way round.

[…]the strategy behind it a very complex one. It is a combination of ATR and EMA.

I’m confused. Is there or isn’t there a strategy?

 

[aparsai]

I assumed you had written the indicator in order to test a hypothesis you may have had about a trading strategy. No reason why you shouldn’t, but it seems a little ‘random’ to write an indicator THEN look for applications for it. Maybe it’s just me that does it the other way round.

I’m confused. Is there or isn’t there a strategy?

Sorry the wording was not correct by the word strategy I meant "indicator".

The creation of the Jagged EMA was not random at all. It is based on several discussions that are going on between me and a small group of traders. We are in the midst of developing some trading strategies and the idea behind this MA crossed my mind through those discussions. As I mentioned I do not have a strategy attached to this indicator yet but it is based on those discussions. I am moving toward a point that we have an indicator that could represent both volatility and MA. I presented this to some trader-friends prior to publication and they liked the idea. They suggested that I share it with others to use their creative minds for their own trading strategies and that's what I have done right now. Is is a completed job at my end, absolutely not. I'm working on this to further incorporate it in a complete trading system. I'm not quite sure when it could happen but I'm very hopeful to see it in action very soon.

 

[Pippy5000]

Indicators are useful and improving them is a bonus for traders..

No indicator will ever be foolproof, but I applaud mathematicians who make our jobs just a little easier by trying to come up with a "perfect" indicator..

Anyway, keep it up man..

 

[aparsai]

Indicators are useful and improving them is a bonus for traders..

No indicator will ever be foolproof, but I applaud mathematicians who make our jobs just a little easier by trying to come up with a "perfect" indicator..

Anyway, keep it up man..

Thanks my friend. You certainly made my day.