Technical Analysis - Moving Averages

#11
Hi friends,

I am new to TA and one thing is troubling me from long time. How exactly can one set a target for a stock. Is it simply the support & Resistance? I would appreciate an explaination
 
#14
Try the zero-lag TEMA crossover with closing prices and heikin-ashi average closing prices. More information here:
http://stocata.org/ta_en/indicators4.html

This is the MetaStock formula:

ZLTMACL MetaStock formula for a zero lagging TEMA average on the closing prices:
{ZLTMACL}
Periode:= Input("Zero-lagging CL TEMA Average ",1,100,60);
TMA1:= Tema(CLOSE,Periode);
TMA2:= Tema(TMA1,Periode);
Difference:= TMA1 - TMA2;
ZLTMACL:= TMA1 + Difference;
ZLTMACL

ZLTMAHA MetaStock formula for a zero-lagging heikin ashi TEMA average:
{ZLTMAHA}
avg := Input("Zero-lagging HA TEMA average ",1,100,60);
haOpen:=(Ref((O+H+L+C)/4,-1) + PREV)/2;
haC:=((O+H+L+C)/4+haOpen+Max(H,haOpen)+Min(L,haOpen))/4;
TMA1:= Tema(haC,avg);
TMA2:= Tema(TMA1,avg);
Diff:= TMA1 - TMA2;
ZLTMAHA:= TMA1 + Diff;
ZLTMAHA

Success!!
 

bunny

Well-Known Member
#16
The moving average will always lag behind the market.
But the good point is that the trend is relatively long lived. So lag does not erode a considerable chunk of your profits.

I use 13 and 30 days EMA. Because the trends are relatively long-lived, the lines do not cross each other that often.

When I am using MACD in trending markets, occasionally, the fast line and slow line cross each other so frequently that BUY and SELL signals come very quickly one after the other.
Another application is trend confirmation for when the averages approach but do not cross each other.
Hmmm...this is new to me, thanks.
 

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