Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Platform: TradeLink, OpenQuant, considering anything that works...
Trading: if it trades...
Posts: 94 since Oct 2010
Thanks Given: 24
Thanks Received: 39
[FONT="][1]In the Logical Trader Fisher discusses using slopes of MAs to identify “confused” markets. In this Fisher describes multiple length MAs aligning their slopes to ensure that a market is moving the same direction in multiple timeframes. Fisher discusses “pivot” moving averages, from this it is interpreted that he actually means Open, High and Low / 3 calculations for daily prices. Though, it is assumed that any data point can be used for the calculation of the MA. Additionally, Fisher does not discuss which type of MA he recommends. Fisher is also at great pains to point out the difference between “confused” markets and “neutral” markets. Neutral markets are markets where the MAs have a flat slope; “confused” markets are where the slopes of the MAs do not align
Has anyone had experience of using this type of analysis to differentiate between flat and trending markets?
[/FONT] [FONT="][1][/FONT] Fisher (2002) – PP117 - 122
Can you help answer these questions from other members on NexusFi?
Platform: TradeLink, OpenQuant, considering anything that works...
Trading: if it trades...
Posts: 94 since Oct 2010
Thanks Given: 24
Thanks Received: 39
The thing I don’t truly understand both the points in Fisher’s book is that are we talking about a doubly smoothed regression here? If you regress on the MAs is that doubly smoothed as doing a Least Squares Regression is a form of smoothing isn’t?
Possibly someone with more mathematical knowledge could comment?