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Does Metastock account for warm-up or stabilization for moving average divergence? If not is there a way to do that in Metastock such as an initial purchase delay of 3 months etc.?
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Rank: Advanced Member
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Joined: 7/25/2005(UTC)
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Hi Huss
The short answer is NO. It's up to the user to allow for any necessary "warm-up" or "up-to-speed" issues. Functions with a Periods parameter generally only inhibit a plot unti the set number of periods is available. This is fine for a simple moving average as it only needs 10 periods to generate a 10-period SMA. A 10-period EMA on the other hand needs about 50 periods to get properly up-to speed.
Roy
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