Searching for entries matching exponential, looking in keywords for any words Found 5 matching entries
Entries
1990
Fat Tails
Version 1.3 September 17, 2017
The Trigger Lines indicator is composed of two lines. The leading line is a linear regression indicator (LinReg). The lagging line or signal line is an exponential moving average (EMA) of the leading line.
This indicator comes with two different options for identifying and uptrend or downtrend:
Trigger line cross: When the leading regression line crosses above the signal line, this is the beginning of an uptrend. Vice-versa the indicator signals a downtrend, as long as the leading line remains below the signal line.
Thrust bars: An uptrend is detected via an upthrust bar that closes and has a median above both trigger lines. A downtrend follows a downthrust bar that closes and has a median below both trigger lines.
The second trend definition adapts faster to changing market conditions, but also produces a higher number of false signals. The trend can be shown via paint bars. The indicator further comes with sound alerts that will signal a trend change.
The Double Exponential Moving Average (DEMA) was first presented by Patrick Mulloy in "Stocks & Commodities" in 1994. It attempts to offer a smoothed average with less lag than a straight exponential moving average.
The Double Weighted Moving Average (DWMA) replicates the DEMA formula, applying it to the WMA (weighted moving average) instead of the EMA.
The Hull Moving Average (HMA) was developed by Alan Hull and is mainly used to identify the current market trend. The HMA is composed of three weighted moving averages (WMA).
The Exponential Hull Moving Average (EHMA) has those weighted moving averages replaced with exponential moving averages.
The Exponential Hull Moving Average exhibits an excellent balance between smoothing and lag (also see "Moving Averages for Financial Data Smoothing" by Aistys Raudys, Edmundas Malčius, and Vaidotas Lenčiauskas – Vilnius University, Faculty of Mathematics and Informatics)