Shifted exponential ma's

[wannagetstacked]

Does anybody know of a forex charting package that allows shifted exponential moving averages? I currently use Netdania but it does not allow me to adjust the lead/lag of the exponential ma. Is there alternatively a way to do this Netdania.

Any help would be great.

 

[Roberto]

Does anybody know of a forex charting package that allows shifted exponential moving averages?

Yes. www.ProRealTime.com. Indices and currencies package about £30 per month. I switched to it from eSignal a couple of months ago and am very happy. Free trial offered. Take a look.

 

[bbmac]

gftforex at http://www.gftforex.com have a good charting package and the dealbookxf2 platform that has lagging or laeding moving averages settings. Also available from http://www.rjoforex.com with the opening of a real or demo account.

 

[roguetrader]

Yes. www.ProRealTime.com. Indices and currencies package about £30 per month. I switched to it from eSignal a couple of months ago and am very happy. Free trial offered. Take a look.

Hi Roberto, have just been looking at this site but I don't see access option for NYSE an AMEX,do they not do this.

 

[wannagetstacked]

Thanks for the replies. Now using CMC.

Nathan

 

[Roberto]

Roberto - don't be afraid, I'm not stalking your every move mate, no really, honest. GJ

That's alright then ... I was concerned that it was I who am following you around!

 

[JumpOff]

What does that mean, a shifted moving average? just moving it to the right on the chart? How can you fill in the leading edge with non existent data? MA's are still lagging, so how does it help to shift it? Sorry to be so ignorant - I am hoping you all can enlighten me..
JO

 

[Roberto]

What does that mean, a shifted moving average? just moving it to the right on the chart?

It mean "forward shifted", yes. It would be moving them to the _left_ that would leave you with missing information, no?

I believe that the gist, in so far as it's possible to sum it up in a sentence, is that using forward-shifted moving averages gives you faster "signals" and even more whipsaws.

This little article by Howard Arrington might answer your question better (no promises!):-

www.ensignsoftware.com/tips/tradingtips08.htm

 

[wannagetstacked]

The shifted moving averages provided me with around about a three minute confirmation before any move in other lagging indicators occur. I do use another shifted ma that gives a confirmation of a market move that provides an 80% success rate,it does however mean watching 1-60 minute charts until all my filters are in place.
The shifted ma's are still lagging,they just provide me with a different view of the market when scalping 10-20 points off the 1 minute charts.
This is also a low risk strategy that suits me because generally if your signals are out by around 5-10 points then you will know that and can exit with a minimum loss.Its not an advanced method i use.
Its mainly adapted from the techniques of Jea Yu at undergroundtrader,combined with strict money management and factored compounding of gains.
In my opinion shifted ma's are definately worth a look.

 

[JumpOff]

OK - I'm feeling more fuddle brained by the minute. You agree the shifted MA is still a lagging indicator, so how does moving it on the screen make a difference?

I hope you can see that my tone is not argumentative, I just can't understand what you are saying.
JO

 

[wannagetstacked]

Basically, when combined with a 5 period ma the cross signals a move 1-3 minutes before for example stochastics would ,this does of course cause a lot more head fakes than say a regular 5/20 ma cross.
Its main use is to confirm rather than give a definative buy or sell signal.
The 3 shifted 3 period ema i use is negatively shifted.
I also use a 13 period ema shifted shifted 3 positively.(used for different reasons to the 3 period)
For myself, both these indicators are used in a distant second to pivot points and support/resistance,
Hope this helps in some way.

Nathan

 

[Roberto]

Would you agree, Nathan, that you get a lot more whipsaws, as well as earlier signals, with these shifted MA's?

 

[wannagetstacked]

The signals are no more unreliable than comparable indicators such as stochasticsi don't find,but does give incorrect signals more frequently if filters are not used.
Personally i will only enter the trade if it is backed up by my other filters,this can mean a lot of chart watching,but when using the 1 minute charts opportunities are presented more frequently.
I don't think trading off 1 minute charts will make you a fortune,and it is extemely discretionary, but it provides a lower risk strategy,with the possibility of catching longer trends if you feel the trend on the 5 minute charts warrants suffering the few points pull back when the stochastics temporarily reverse.
With regards to risk as each trade has set parameters it is clear when you have entered a trade wrongly and losses can be kept under 10 pips. If you have a £10000 account that means you can stake £10 per point safely knowing you will never risk more than 1% of your account.
I have found the risk/reward ratio for this type of short time frame trading varies greatly dependant on how tight you keep stop losses and how well you can recognise when to exit.I would recommend several weeks of following one or two instruments intraday on 1 minute 5minute 15 minute and 60minute, starting at 60 minutes to see long term trends and working your way in to the 1 minute chart, when all the trends match up your probability of success is increased greatly.Try to avoid trading against the trend anything further than the 10 minute chart,fighting the trend before the 10 minute charts never usually yields a large gain, eg, if 60,15,and10 minutes are downtrending and you are planning to ride a long based on the 1 and 5 minutes charts there is less chance that you will make a trade that would fulfill a decent risk/reward ratio.

Sorry if i've bumbled on a little
Hope some of this is of interest to someone.
Ps. i'm using cms not cmc,typing error
Nathan

 

[jhooper]

Hi Nathan,
I'm very interested in your post as I have used displaced moving averages before but always positive/right shifted ones. I understand your multiple timeframe setup, but are you saying that you use a cross of a 5period simple moving average (non displaced) and a "3 period negatively shifted by 3 periods" exponential moving average?? I understand you don't use this as an entry signal but more of a backup/alert signal,but are you therfore waiting for the cross to form before jumping onboard the trend? Obviously although the stock price bottoms there isn't going to be a E3x -3 MA screen print until 3 periods after.
Have I missed the point with the negative shift and its usefulness?
I'd appreciate it if you could put me right if i have,
Thanks
John

 

[Dentalfloss]

di napoli advocates forward shifted simple.i think it is 5 plus 5 ,7plus 3? and a 25 -plus5.not sure abot these but gft put them in the indecators section.
underground trader is advocating 3ema displaced minus three.
di napoli ,i think wants to keep you in a trade if there is whipsawing and underground trader is to give pre warning of a move.the 3 ema being too whippy.
not sure how well the di napoli ma work.please let me know.
however the di napoli fib nodes might be a different ball game.i have only just been introduced to them and as far as i can see they are great.
if anybody knows about fib nodes please post.i am anxious to learn about thes for swing tradin

 

[wannagetstacked]

The main aim of the positive 13 period postive shift ema is to "reduce the whipsawing effects of prices in and around measures of central tendancy" (quote from underground trader book).

The negatively shifted 3 period ema is used because prices do not always reverse immediately when they reach an extreme,they instead tend to stay at that point for a couple of periods and then reverse. Therefore prices are 3 periods ahead and when they do turn the 3 shift ema will confirm this reversal by crossing back in the other direction through your simple 5 period ma for a buy signal,and through the 15 ma for a sell.
This indicator therefore is of ideal use at price extremes.

A sound knowledge of identifying extremes is therefore needed.

I would suggest researching S&R,pivot points,fibbonacci levels,divergance, and also a basic knoweledge of when elliot waves are occuring.
Only then should you consider using lagging indicators on short time frames to time your entry. I personally use a 1 hour chart for trend viewing, 5 minute chart for entry, and the 1 minute chart as the trigger. By trigger i mean to wait until you are at extreme points on the longer time frames then wait for breakouts and stochastic reversals through the 20 and 80 bands to enter. The 1 minute stochastics chart can be used to pair down trades when the 1 minute charts signal a short term pullback before the 5 minute chart pulls prices back in the right direction. These short term reversals can often be 5-10 pips so it is worth paring out some profits if you have immediate prices with your broker.

Hope that my contributions are still of use even though i go on a bit. I'm happy to answer any other questions you have,

Thanks

Nathan

 

[jhooper]

nathan:
Thanks for breaking that down. Now it makes sense to me.

Dentist007:
Joe Dinapoli uses the 3x3, 7x5 and 25x5 simple moving averages where the shift is always positive (to the right). The 3x3 is also used to define thrust and several of his "directional patterns". Joe's one of the good guys in this business and has made his money for over 30 years. I bought the Trading with Dinapoli levels book and can recommend it. It includes the fibnodes stuff and is really too lengthy to break down here.However he does use what he terms the strongest of fibonacci retracements to buy into trends and directional patterns. This includes confluence of several fibnodes. His website is www.fibtrader.com and he offers 3 (?) months free use of his forum which he takes part in. With the book this is the best way to learn his techniques. Searches in Google and e-signal forums will also give you some outline.
all the best,
john

 

[Dentalfloss]

jhooper.can u pm me with more on fib nodes.i dont really want to spend a hundred quid just yet on the book.thanks