Trading Strategies Based On Digital Filters - page 77

 
Pip:
SIMBA,

You are quite welcome.

To address your question above, the indicator does not repaint at all which mainly why I use it. The indicator does however go out of phase every so often and I believe this is normal for this type of analysis. This is particularly why I use the Triggerlines and MACD to confirm the trend. If the Triggerlines and the MACD along with Cycle_GJH4 are not saying the same story I don't take the trade.

On another front, I have messed around with various MA based on centered MA's (Hurst), but most repaint due to the half cycle delimma. Other third-party software such Channalyze and Cycle Trends experienced the same issue with their own analyses for cycle forecasting, which renders them practicaly useless (personal opinion).

One way i found to bypass the repainting problem in Centered MA's is to use a LWMA based on median price and half cycle of the CMA with a shift of two bars in the past. You will get almost exact same bahavior as a centered MA but with the two bars lag.

I am still experimenting with the technique described above and will attempt to incorprate it in my strategy. This would serve as an excellent indication of price direction when coupled with the cycle indicator.

For a better visualization, i have attached a screen shot similar to the one i posted previously with the centered MA (Yellow) plus a LWMA (Aqua) for comparison and removed the triggerlines.

Cheers,

Hi Simba i have tried to obtain the same results but without success:if i attach an lwma it results more different tahn yours.Do you use matatraders default ones?Thank you

Ps. Centered ma is setted to 24 .lwma to 12 shift -2

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Thanks

Pip:
SIMBA,

You are quite welcome.

To address your question above, the indicator does not repaint at all which mainly why I use it. The indicator does however go out of phase every so often and I believe this is normal for this type of analysis. This is particularly why I use the Triggerlines and MACD to confirm the trend. If the Triggerlines and the MACD along with Cycle_GJH4 are not saying the same story I don't take the trade.

On another front, I have messed around with various MA based on centered MA's (Hurst), but most repaint due to the half cycle delimma. Other third-party software such Channalyze and Cycle Trends experienced the same issue with their own analyses for cycle forecasting, which renders them practicaly useless (personal opinion).

One way i found to bypass the repainting problem in Centered MA's is to use a LWMA based on median price and half cycle of the CMA with a shift of two bars in the past. You will get almost exact same bahavior as a centered MA but with the two bars lag.

I am still experimenting with the technique described above and will attempt to incorprate it in my strategy. This would serve as an excellent indication of price direction when coupled with the cycle indicator.

For a better visualization, i have attached a screen shot similar to the one i posted previously with the centered MA (Yellow) plus a LWMA (Aqua) for comparison and removed the triggerlines.

Cheers,
leledc:
Hi Simba i have tried to obtain the same results but without success:if i attach an lwma it results more different tahn yours.Do you use matatraders default ones?Thank you Ps. Centered ma is setted to 24 .lwma to 12 shift -2

PIP:Thanks a lot for posting your reply and the suggestion about the LWMAs...I agree with you regarding Cycle Trends and Channalyzer..Question,How do you know the cycle of CMA is the right one?

Leledc:I think you should address your question regarding LWMA to Pip,he is the author of the post you were referencing....his method is intriguing enough to deserve an evaluation.

PavaLoca/losstrader: I see that you vultures are experiencing famine,to the point of being desperate for help,do not worry,you won`t get it ...crodzilla gave losstrader a sound method and losstrader was unable to use it due to his incompetence..Pava has been rambling the forums for years and still has to debase(if that were possible )himself to beg for help ...Your association is as promising as Abbott and Costello

Regards

S

 
SIMBA:
PIP:Thanks a lot for posting your reply and the suggestion about the LWMAs...I agree with you regarding Cycle Trends and Channalyzer..Question,How do you know the cycle of CMA is the right one?

Leledc:I think you should address your question regarding LWMA to Pip,he is the author of the post you were referencing....his method is intriguing enough to deserve an evaluation.

PavaLoca/losstrader: I see that you vultures are experiencing famine,to the point of being desperate for help,do not worry,you won`t get it ...crodzilla gave losstrader a sound method and losstrader was unable to use it due to his incompetence..Pava has been rambling the forums for years and still has to debase(if that were possible )himself to beg for help ...Your association is as promising as Abbott and Costello

Regards

S

Sorry Simba i have made a mistake about the author of post!!!Thanks

P..s. I always read your threads and post :they are always good!!!Bye

 
 
SIMBA:
PIP:Thanks a lot for posting your reply and the suggestion about the LWMAs...I agree with you regarding Cycle Trends and Channalyzer..Question,How do you know the cycle of CMA is the right one?

.....

S

SIMBA,

With all honesty, at the time when I used the centered CMA I was not thinking cycles; I was more thinking down the line of trend following and thus I needed not to think about the dominant cycle since the CMA would always adjust itself for best fit. The CMA LWMA combination worked well, where one confirmed the movement of the other.

With that said, I am still considered a newbie when it comes to cycle analysis and I am still catching up with all the educational posts that are posted in this thread as well as the cycle extraction thread.

Sorry, but I wish I had a more suitable answer for you.

Cheers,

 
leledc:
Hi Simba i have tried to obtain the same results but without success:if i attach an lwma it results more different tahn yours.Do you use matatraders default ones?Thank you Ps. Centered ma is setted to 24 .lwma to 12 shift -2

Hello Leledc,

Please note that I have made an error in my previous post you reference. The correct setting is to use a LWMA that is roughly double that of the CMA, which is the opposite of what I had described previously. My apologies for the confusion.

I use 5 period CMA and 9 or 10 period LWMA with -2 shift. This is the setting that I have settled on thus far. I mainly used this setting for trend following trading (i.e. buy when both MA are trending and stop&reverse when they bend the other way). Of course you will need some type of filter to avoid the whipsaw. I believe digital filters similar to Cycle_GJH4 work well in filtering the trend and I plan on testing that next once I have mastered my current setup.

Cheers,

 
Pip:

I have attached an image that shows my setup. You will notice that on the D1 Chart the Cycle_GJH4 indicator (red line) is curved up with MACD confirming the upward cross. In addition the trigger lines are pointing up and are blue with good separation. In contrast, you notice that on the H4 chart the Cycle_GJH4 indicator is curved downwards (redline) with MACD experiencing a bearish trend. I am waiting for the retracement to occur on the 4H chart, supported by the bearish divergence, prior to picking up a few contracts when the main trend on the D1 timeframe continuous. Obviously this is my analysis of the situation as of this point and things might change as the market changes (for example, the divergence fails)

Regards,

Hello,

For those interested in the outcome, the divergance failed and thus I did not have an entry point. The good news though is that the trend on the D1 chart is holding as the cycle indicator, triggerline and MACD are indicating.

I prefer to always enter on a retracement.

Cheers,

 

Confirmation

Pip:
Hello,

For those interested in the outcome, the divergance failed and thus I did not have an entry point. The good news though is that the trend on the D1 chart is holding as the cycle indicator, triggerline and MACD are indicating.

I prefer to always enter on a retracement.

Cheers,

PIP,

Good comment,could you keep posting your thoughts here?

Additionally...

1-If you want to post a "potential" setup in advance,that you want to be analyzed,please do so.

2-Try to use either zero lag macd or DT oscillator,as confirmation tool,just check them and discard if they don`t work....They are available at this forum...both of them work fairly well with my GJ h4 cycle,for most liquid pairs.

3-At Elite section I posted a thread with a few real time trades regarding the usage of TMA Bands(done by mladen),if you are an Elite member,it could be interesting for you to take a look,since we worked with Hurst methodology and mladen knowhow

Regards

S

 
SIMBA:
PIP,

Good comment,could you keep posting your thoughts here?

Additionally...

1-If you want to post a "potential" setup in advance,that you want to be analyzed,please do so.

Thank you for the offer; i will most likely create a separate thread on the topic just so that I do not hijack this thread.

2-Try to use either zero lag macd or DT oscillator,as confirmation tool,just check them and discard if they don`t work....They are available at this forum...both of them work fairly well with my GJ h4 cycle,for most liquid pairs.

Thanks for the tip. I have located Zero Lag MACD, but still searching for DT Oscillator. I will definitely evaluate them into my strategy.

3-At Elite section I posted a thread with a few real time trades regarding the usage of TMA Bands(done by mladen),if you are an Elite member,it could be interesting for you to take a look,since we worked with Hurst methodology and mladen knowhow

I will most definitely review the thread you mention. Thanks again.

Regards

S

SIMBA,

Feedback above in Red.

Cheers,

 

gbp/jpy according simba

simba you're right the direction of this pair ... jajajaja, the pair predicted to fall and your going up ... congratulations on your magic indicator, jajaja

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