Hello All.
Last night I spent some really constructive time surfing the web :-),,,after a few hrs my prefrontal cortex decided that 2-3hrs of this would eventually lead me into the direction of comparing MA's! Oh what a delightful evening it was.
Seriously though, I came across something called "Tillson's T3 Moving Average.
This also lead to me looking at
'JMA Jurick Moving Average'http://www.jurikres.com/catalog/ms_ama.htm#top
The
'PLA Precision Lagless Average'http://www.precisiontradingsystems.com/PLA%20v%20Other_averages.htm
& I can't surf ever without Jose's MetastockTools.com website cropping up,
(
Jose's TEMA MA,, & Lagless MA).
OK, 1st of; I'm not looking for the Holy Grail,,(As I would/will be searching for something I cannot find), & it was a pleasant evening,,,but after much playing about I really like the 'Tillson's T3 MA. (Joses TEMA with a few tweaks in his settings comes close to the T3's output),, and I think I want to try and construct something around this.
(As a note: for interest, came across 1 download , a Powerpoint presentation by 'Lind Wald[censored]' presenting a guide to implementation off the T3 MA,, thought it might be of interest here).
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http://www.google.co.uk/url?sa=t&rct=j&q=pl*%20better%20than%20tillsons%20t3%20moving%20average&source=web&cd=1&ved=0CBsQFjAA&url=http%3A%2F%2F
www.teachtalktrade.com%2FPDF%2520files%2FLindwald%2520mov%2520avg%2FBetterMA.ppt&ei=TYOuTq7NNI3EtAbLhey7Dw&usg=AFQjCNGoI2DEMPx6P3CJWOQaVIA9gode2g&cad=rja
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****INFO On INDICATOR***
Originally, the T3 was used as a proxy for price, or instead of an EMA
in systems. Tillson’s moving average has only 30 percent as much lag as
an EMA of the same length. There is nothing more important than lag when
it comes to moving averages. The longer the lag, the less useful the
moving average is. Moving averages, by nature, lag the underlying price.
The T3 is an average that eliminates much of the lag found in typical
moving averages, yet is sensitive to changes in trend. Because Tim’s T3s
are very smooth and very sensitive to directional change, they allow us
to structure approaches to the markets using these characteristics.
*************************
1st off
Tillson's T3 (A Metastock Interpretation I found on the web whilst Surfing) :-)
Code:
e1:=Mov(C,3,E);
e2:=Mov(e1,3,E);
e3:=Mov(e2,3,E);
e4:=Mov(e3,3,E);
e5:=Mov(e4,3,E);
e6:=Mov(e5,3,E);
c1:=-.618*.618*.618;
c2:=3*.618*.618+3*.618*.618*.618;
c3:=-6*.618*.618-3*.618-3*.618*.618*.618;
c4:=1+3*.618+.618*.618*.618+3*.618*.618;
c1*e6+c2*e5+c3*e4+c4*e3;
Also,, I came across another version from the Paritech wesite, but the Metastock Indicator Builder wouldn't accept it. :-(
http://www.paritech.co.uk/education/technical/custom/indicators/98jan2.asp
Code:
Periods:=Input("Periods?",1,63,5);
a:=Input("Hot?",0,2,.7);
e1:=Mov(P,Periods,E);
e2:=Mov(e1,Periods,E);
e3:=Mov(e2,Periods,E);
e4:=Mov(e3,Periods,E);
e5:=Mov(e4,Periods,E);
e6:=Mov(e5,Periods,E);
c1:=-a*a*a;
c2:=3*a*a+3*a*a*a;
c3:=-6*a*a-3*a-3*a*a*a;
c4:=1+3*a+a*a*a+3*a*a;
c1*e6+c2*e5+c3*e4+c4*e3;
(I really would like to see this working,, anybody know how to fix it,, unusual for paritech?
Ok,, what's my post requesting help with?
Is there anyway to include in the 1st T3 formula I've listed here a vertical shift function?
That's it really.
It's just so I can see how they appear 'Banding' price,, IE I would insert this indicator 3 times on a price chart (Upper MA with say +1.5 vertical Shift) ,, & Lower MA as a band with a -1.5 vertical shift.
This would I think create a banding around price that isn't lagging too much,, might be part of a good 'Range Bound' system,, IE sell at top band, cover on middle band,, buy on bottom band, cover at middle MA,, with maybe a ADX as a filter to trade only when ADX is less than say 25-30,, need to look at this closer really)
Might work on some currency pairs say on a 60min chart? Not sure,, won't know at all without Vertical Shift Function! :-)
KISS,, keep it simple,, as Albert once said;
"Everything should be made as simple as possible, but not simpler."Hope somebody can help me with this.
Many Thanks for all your time,
and I hope there also might be some value in this post for others.
Best regards;
TheGhost. :-)
