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oem7110  
#1 Posted : Wednesday, May 29, 2019 11:39:17 PM(UTC)
oem7110

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I would like to know on how to determine the best EMA parameter for support and resistance.

such as whenever price touch EMA, which would most likely to rebounce with certain parameter.

Does anyone have any suggestions? Thanks in advance for any suggestions

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#2 Posted : Thursday, May 30, 2019 2:30:55 PM(UTC)
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Originally Posted by: oem7110 Go to Quoted Post

I would like to know on how to determine the best EMA parameter for support and resistance.

such as whenever price touch EMA, which would most likely to rebounce with certain parameter.

Does anyone have any suggestions? Thanks in advance for any suggestions

You can use the System Tester to Optimize signal criteria based on entry/exit profitability/performance although this has less to do with the frequency of signals. There are a large amount of numbers that one could optimize for this, so automating that process seems critical, and the System Tester is probably the closest tool we have to automating finding the right combination of numbers to use.

Otherwise I would say something like Excel could be used on the time series history of the instrument being tested. But you could certainly sum up the number of times a formula condition is 'true' in a chart and edit those formula parameters manually as well, just using the Indicator Builder and a MetaStock chart.

oem7110  
#3 Posted : Thursday, May 30, 2019 4:11:48 PM(UTC)
oem7110

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I would like to know the logical on how to test and find EMA parameter. Do you have any related example on how to test this kind of condition? Do you have any suggestions? Thank you very much for any suggestions (^v^)
MS Support  
#4 Posted : Friday, May 31, 2019 2:42:27 PM(UTC)
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Originally Posted by: oem7110 Go to Quoted Post
I would like to know the logical on how to test and find EMA parameter. Do you have any related example on how to test this kind of condition? Do you have any suggestions? Thank you very much for any suggestions (^v^)

This would just depend on the specific criteria of a bounce. We would have to be able to define the conditions mathematically in order to make a formula from this. There are different ways to approach the issue, but one way would be to simply begin with the most recent bar of the pattern and work backward, such as:

Code:
L > Mov(C,20,E) AND Ref(L <= Mov(C,20,E),-1) AND Ref(L > Mov(C,20,E),-2)

This is just a simple example where the most recent Low is greater than the 20-period EMA, the prior bar's low was less than or equal to the EMA, and the bar prior to that was greater than the EMA. A very simple "V" shaped bounce. You could of course get more specific with the criteria if you wanted the prices to be within a certain % range of the EMA or to extend the pattern beyond 3 periods.

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