I think you will need to adjust the way you are viewing your setup. As you know, with COBC=false, values of all moving averages will adjust as the bar forms. I base all my decisions on bar close values so I can do just as you suggest which is to look at the chart at the end of day and see the same thing on historical bars as I did in real time.
If I understand what you're wanting, it sounds like you want the open value of the moving average at bar close. Try this and see if it helps. I assume you are using NinjaTrader. If so, add another moving average with the same settings as the one you are using except change the Displacement value from 0 to 1. Be sure you select a different color so you can distinguish between the 2. Displacing the moving average by 1 bar may be what you are looking for.
The following user says Thank You to MWinfrey for this post:
When COBC = true, the indicator will not paint a value for the current bar on the chart until that bar closes. The indicator will be a bar behind, showing only the last completed bar. This is fine for what you want.
Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.
Need help? 1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first. 2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses. 3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make. 4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance. 5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers. 6) Help using the forum? Watch this video to learn general tips on using the site.
If you want to support our community, become an Elite Member.
This post has been selected as an answer to the original posters question
@podski: The question you asked is not simple, many users of modern charting programs do not understand it.
The grandfathers of Technical Analysis used charts that were printed, once the session closed. The values shown on those charts always referred to a complete (daily) session.
With charting programs like NinjaTrader you have the option to display the indicator value for the current unstable period, while it is not yet complete.
COBC = true: For the current unstable period no value will be displayed. Right now it is Wednesday morning 10:40 AM EST. If you have a 3-period SMA, the last value will be displayed for yesterday. It will be calculated from the 3 closes from Friday, Monday and Tuesday.
COBC = false: For the current unstable period a preliminary value will be displayed. This value is calculated from the Monday and Tuesday close and the current price at 10:40 AM EST.
Using indicators with COBC = false setting can be entirely misleading. Imagine that you want to calculate the ATR(3). With COBC = false, it is calculated from Monday's true range, Tuesday's true range and the value Zero at the open of Wednesday's session. This means that it is completely distorted, as it will systematically show a value which is by far too small during the morning session.
Why not use the displacement feature?
If you want to judge the open of the current bar against yesterday's final value of the SMA, you can simply displace your moving average by 1 bar. The chart will now show yesterday's indicator value aligned to today's open, and you can visually compare it.
You are not the first to ask this question or to use moving averages in that way. There are three well-known examples.
PLDots: PLDots are calculated as a 3-period SMA calculated from the typical price, which is shifted by 1 period.
MomDots: MomDots are calculated as a 3-period SMA calculated from the typical price, which is shifted by 2 periods.
3X3: 3X3 is a 3-period SMA calculated from the close, which is shifted by 3 periods (see book of Joe DiNapoli)
Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).
The following 8 users say Thank You to Fat Tails for this post:
I've been trying to get my eyes in tune with this all day but its not quite there. It is an offset related issue but not forward, backward.
I remember your discussion of the MomDots and other fat blokes ... from the Heikin Ashi thread.
In fact what I am looking for is a little similar to what you have done with some modified bollinger bands. The business case is the same in the sense that the value I am looking for is running away from me.
Now - I may be able to get my eye in - but what I am thinking about is the following. It's a bit of a mongrel.
SMA (or other)
COBC=False (i.e. I want the plot visible at the bar open)
Input Series="Close" from the current period -1 (or selectable offset)
@podski: Sorry this was my fault. Just use the indicator in COBC = true with Displacement = 1. It should now plot the value calculated from the prior close for the current candle and not plot the unstable value for the next bar. If you select the plot style "Dot", you should get something similar as the MomDots.
The following user says Thank You to Fat Tails for this post: