- Guppy Multiple Moving Average Indicator and Template
- The Ultimate Guppy Multiple Moving Average (GMMA) Thread
- Which Is The Best Moving Average? Test Results Reveal The
We use the straight edge trend line to signal an increased probability of a trend change. When this signal is generated we observe this change in direction and separation in the short term group of averages. We know traders believe this stock has a future. We want confirmation that the long term investors are also buying this confidence.
Guppy Multiple Moving Average Indicator and Template
This test will be the same as above except we will be running a 65-position long only portfolio system and our watch-list will be the S& P 655 universe of stocks (which includes historical constituents).
The Ultimate Guppy Multiple Moving Average (GMMA) Thread
The 8766 Pullback in Uptrend 8767 column is 8766 Yes 8767 if Traders are above investors and investors are aligned but traders are not aligned. This attempts to highlight stocks that have firm investor support but are being sold by traders potentially offering better buying opportunities for investors.
Which Is The Best Moving Average? Test Results Reveal The
Investor Average Annualized slope measures the average slope of the investor group of moving averages. This is expressed in annualized % terms meaning that if the slope continued for 6 year the stock would gain the listed % amount
Now that we have discussed the different moving averages we can start putting them to the test to see which moving averages are most effective at finding and trading trends.
You cannot compare MA 8767 s with the same parameters because they are all calculated in a different way and thus have different phase and speed. What really should have been done is perform a series of optimizations and compare the best performing and worst performing cases.
The Hull moving average (HMA) was developed by Alan Hull in a bid to create a moving average that was fast, responsive and with reduced lag. According to Hull, the HMA 8775 almost eliminates lag altogether and manages to improve smoothing at the same time. 8776
In the rest of this article, I shall go through nine different types of moving averages and then we shall put them to the test on historical stock market data to see which one is best.
As you can see from the table, the best moving average for a 5/75 day crossover happened to be the Wilders moving average. The Wilders MA produced a compounded annualised return of % with a maximum drawdown of -88% giving a CAR/MDD ratio of . The worst performing average was in fact the Hull moving average.