glgene
616 posts
msg #36722
- Ignore glgene |
7/5/2005 4:30:47 PM
Has SF ever considered adding Weighted Moving Average to its arsenal of filters? I know they have Simple and Exponential MAs, but no WMA (except one weighted with volume).
Could someone here show me how to get the EMA of this string of numbers?
Day 1 $8.00
Day 2 $8.50
Day 3 $8.25
Day 4 $8.50
Day 5 $9.00
I know the SMA is $8.45, and the WMA is $8.58. I didn't learn until this weekend exactly how to compute the WMA. FWIW, here it is:
Day 5 $9.00 x 5 = 45
Day 4 $8.50 x 4 = 34
Day 3 $8.25 x 3 = 24.75
Day 2 $8.50 x 2 = 17
Day 1 $8.00 x 1 = 8
---- --------
15 $128.75 / 15 = $8.58
OK, someone please step forward and show (simply) how to compute the EMA.
Thanks in advance.
GL Gene
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alf44
2,025 posts
msg #36723
- Ignore alf44 |
7/5/2005 6:02:26 PM
Uhhh...StockFetcher HAS "Weighted Moving Averages" !
alf44 :8^)
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glgene
616 posts
msg #36725
- Ignore glgene |
7/5/2005 6:11:21 PM
Please show me where SF has Weighted Moving Average (not related to volume). Thanks.
GL Gene
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alf44
2,025 posts
msg #36726
- Ignore alf44 |
7/5/2005 6:27:38 PM
glgene,
Go to the SF Home Page --> Click on "Create" in the "Custom Filters" box at the top of the page --> then Scroll down the page...there are 2 columns of indicators.
Weighted Moving Averages (WMA) are in the left-hand column...5 UP from the bottom of the left-hand list !
Or...here's a link (copy and paste this in to your browser window):
http://www.stockfetcher.com/stockdb/fetcher?p=ftsbuild
-------------------
Hope this helps !
alf44 :8^)
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glgene
616 posts
msg #36728
- Ignore glgene |
7/6/2005 4:07:24 AM
This is the computer response when I tried your suggestion:
Weighted Moving Average(10) Error: Syntax error in filter.
Please .. show me how it works. Because I really want it to work!
GL Gene
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jclaffee
81 posts
msg #36730
- Ignore jclaffee |
7/6/2005 9:20:34 AM
I got 75 hits from
Jim
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glgene
616 posts
msg #36731
- Ignore glgene |
7/6/2005 10:05:35 AM
Jim,
I don't know why my WMA search got an error, and yours didn't, but good for you. I ran it and also got 75 matches. Great!
Now how about the EMA calculation (from my original note)?
GL Gene
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houghton
29 posts
msg #36732
- Ignore houghton |
7/6/2005 10:34:27 AM
glgene,
First, if your Day 1 is yesterday, then you have the WMA calculation reversed. The greater weight (5) should be applied to Day 1. OTOH, if your Day 1 is the first day of a series of days, then your WMA calculation is correct.
Calculation of the EMA is a little more complex. You can find a fairly straight-forward explanation here:
http://www.incrediblecharts.com/technical/moving_average.htm
Karl
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glgene
616 posts
msg #36733
- Ignore glgene |
7/6/2005 10:54:03 AM
Karl,
In my 5-day example, Day 5 is the most recent day, so the calculation is correct. Thanks for your help.
GL Gene
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glgene
616 posts
msg #36734
- Ignore glgene |
7/6/2005 11:20:53 AM
I still can't calculate the 5-day EMA with my example numbers. Any help here? Use Day 5 as the most recent day.
close is greater than wma(30)
and add column wma(30)
and add column ema(30)
and add column ma(30)
and draw wma(30)
and draw ema(30)
and draw ma(30)
This shows that the WMA is generally the closest to the price, EMA is 2nd, and SMA is 3rd. WMA causes more whipsaws, but if you use it in conjunction with 2-3 other filters (eg, CCI) it makes the most sense (in my opinion). Consider if you had 2-3 successive down hard days. WMA would be more sensitive, and SMA would merely count those 2-3 days as normal. EMA would be closer to WMA.
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