friend4you wrote: ↑
Fri Mar 02, 2018 3:38 am
rijay wrote: ↑
Thu Mar 01, 2018 11:33 pm
you are right adaptive ma are no better then non adaptive,
ususally all averages that were made adaptive by others were based of some kind of smoothing , double smoothing .. like that so they were not much better
but mladen did something different on step one more averages 2.3 version, as he used atr ranges for smoothing, so it made all the difference and that is why you will find it more useful.
if you have kind of filter you can suggest one , and i will be adding it to my system too.
clouds are constructed based on step one more average , color change on cloud is junction of centerline cross of macd. histogram rising and falling on cloud shows start and end of price swings. this swings gets extended in trending markets in direction of trend as prices refused to correct. that is when role of step one more average 2.3 comes in to play as filter, to keep me in trend till trend lasts.
you can suggest other indicators also to add to this system.
A good description. If you set your step oma to use highs and lows, it looks even better and nearly exactly as the atr-bands except, that bands show always good sl-values on BOTH sides. Yes, most trader get lost in non-trending time or they jump late on spikes. Wider Bands also allow to see higher tf trend in a smooth way and entering cheaper long on new up after pullback. Will have a deeper look on your way of trading. Thanks.
yes you are right, your atr bands settings are excellent, i think you must have arrived to that settings after much of trial and error.
in fact before you provided with that band settings i was always wandering what is the high and low atr ranges that are used in step oma as there is no option to show bands around step oma. it is when i overlapped your bands on step oma that is when i came to know with exact visibility on chart.
as you said your bands provides with nice sl on both sides of bands is right too. especially when that is confirmed by step oma(as it uses the same ranges i think as your atr bands shows to draw upper and lower borders of bands.
the inclusion of stlm histogram and macd in my system is not to track moving avrages.
i need to track volume and open interest data changes with indicator to trade well for that defined swing.
stlm histogram does that.( so is macd. as stlm histogram is with less whipsaws then macd it puts in better visibility with macd)
to meet this task of tracking volume and open interest i had a task to match it with indicator.
so i matched real open interest and volume data provided by exchange on stocks and index futures data on different software that provides the real exchange data.
for example when prices are falling in downtrend till stlm histogram keeps posting red bars , volume and open interest keeps rising, (more shorts keep forming)
when stlm histogram starts to post green histogram and starts ascending that is when short squeeze begins, that short squeeze continues till again red histogram bars on stlm indicator does not appear. and if again after hitting crucial averages prices starts falling and histogram starts showing red bars(it shows new additiong of volume and open interest happening on short side and prices will again start falling in direction of the downtrend) so that is what stlm histogram shows me on volume and open interest front visibly on chart without need to match it again and again to real data of open interest and volume.)
macd matches with the same description as above.
all the rest of the indicators on this system are based to match this volume and open interest data too.
you may also want to try and match it with volume and open interest data too.
i need to do this drill to see where stlm histogram stands(alojng with assesment of whole system) for the on going swing every day and on all time frames beginning from monthly frame down to 15 minutes chart frame. (as i do not trade in ltf templet timeframe but htf templet timeframes), those who trade on ltf timeframes need to do this drill till m1 timeframe )
i have stopped on ltf timeframes because i need breathing space and time in my favour, though trading on htf does mean that i have to be ready for more margin money)
as you rightly said in early part of trading life every one makes mistakes to trade sideways markets and try to catch swings late ( including me too)
but Mr. market teaches the lessons the hard way.
as you are fine tund technically , and go through every minute details ,and provide with constructive ideas, it is worth elaboratig to you
for others it is just a 'colorful' system.