.


Re: Rijay's System of Moving Averages

#62
thanks for shifting the post to proper thread,

i never expected such violent reaction for putting up an idea,(just came as blackswan!)

reacting over a good looking arrow on chart image, but what can i say it was jma, and that too is coded by great coders mladen and mrtools.

but nice to see moderators are quick to react and prevented more escalation and preventing free fall !

thanks.

Re: Rijay's System of Moving Averages

#63
rijay wrote:
Sun Nov 03, 2019 2:18 am
thanks for shifting the post to proper thread,

i never expected such violent reaction for putting up an idea,(just came as blackswan!)

reacting over a good looking arrow on chart image, but what can i say it was jma, and that too is coded by great coders mladen and mrtools.

but nice to see moderators are quick to react and prevented more escalation and preventing free fall !

thanks.

Thank You...Rijay for your efforts, hardwork, supportive nature & shares.

Re: Rijay's System of Moving Averages

#64
Hi Rijay,
I go for a swim, come back and all hell breaks loose :-)
I like your new thread, looking forward to seeing more of your stuff here.
Don't worry about ppl moaning, I used to get irritated with Pava all the time for being such a dick but now I just ignore him.
The same with that other tool the crippled one (tro), now I just delete his posts.
Anyway, good luck with your new thread.
All the best
Xard777

Re: Rijay's System of Moving Averages

#65
Rijay, I notice that you are into macd in a big way, have you done any work on dema crossovers?
Apparently the dema crossover uses the macd for confirmation to help filter out false moves.

I am interested in the dema crossover, if you any info on it would help.
All the best
Xard777
dema xover with macd.png


Re: Rijay's System of Moving Averages

#66
xard777 wrote:
Mon Nov 04, 2019 12:32 am
Rijay, I notice that you are into macd in a big way, have you done any work on dema crossovers?
Apparently the dema crossover uses the macd for confirmation to help filter out false moves.

I am interested in the dema crossover, if you any info on it would help.
All the best
Xard777


i use stlm histogram to filter false signals of macd , it does decent job most of the time, this false signal dilema was the only reason for adding stlm histogram as filter on macd false signals , on my system i use

once both lines cross each other and starts moving back towards its centerline, your highlighted points comes in between, this is points of dilema, what is my observation is that once there is significant crossover of this two lines already done, to invalidate this crossover a big price action is needed, that happens in very strong trend, that will happen roughly around 10-15 % case. so most of the time this is filtered well by stlm histogram , though can not tell exact figure, as i do not know how to test it for it in strategy tester, may be some testing in strategy tester, to see how many times stlm histogram filters this false signals will give exact percentage.

yes filtering macd false signal is only drawback of macd, tried every averages to filter it, but no average works perfectly as filter on macd, so adopted two methods for it.

---------------------------------------------------------------------------------------------------------------------------
one is stlm histogram - this filters false signals of macd most of the time,( will attach image with details of stlm histogram and macd with mtf context of macd and with each other)

consider stlm histogram matching with macd signal line( not macd line), stlm histogram behaves the same as it, but it gives much smoother visibility
-----------------------------------------------------------------------------------------------------------------------------

other thing to filter out false signal of macd is to see positioning of macd on all timeframes in single chart, this solves the problem of false signalling of macd , as i am analysing all timeframes in relation to each other.

so over time only solution i adapted is to see how is the positioning of macd on all timeframes, to each other,

using only subwindow macd i was not able to gauge the relative positions of macd in eachtimeframes to each other,

so i am using jurik smooth ribbon( ideal still is macd tape displayed on chart screen in mtf mode , but never found macd tape dispalay in color in mtf mode on chart) on settings 12 and 50(posted indicator here in this thread)as displayed in attached image, on this settings it matches with macd, just comparing it with subwindow shows the exact relation.

histogram on macd is very important for me, each bar on histogram represents lower timeframes, for example if i am on H4 chart, all bars above zero line that are green shows lower timeframes trend like H3, H2, H1..... in cumulative form),

now H4 trend changes when lower timeframes starts aligning, like slowly 15 minutes, 16 minutes, 17 minutes, 18 minutes..............H1,H2, H3 timeframes slowly starts aligning in one direction (this is what histogram shows)
when all lower timeframes aligned, there appears big and fast price bar on chart and throws atr of prices(and so moving averages ) of all lower timeframes to other side as all timeframe crucial moving averages are breached in single bar, this large price bar sets panic among traders as they are now caught off guard and rush to close positions, this propels the reversal on chart in form of fast and large price action bar, mostly running fast to breach trendline
this reversal also gets reflected on macd histogram as cross of histogram above or below zero line(or cross of macd line and macd signal line)

so now the option to find out when trend is going to change and anticipate trend change coming is -one assess all lower timeframes below H4 turning on multiple timeframes chart like H3,H2,H1 ..... or to see on single chart with macd histogram of H4 timeframe, i do both.( now with jurik smooth ribbon showing all timeframe trend in single chart of all timeframes i need not open all chart below H4 to see when they are aligning, i can see all lower timeframes on chart as macd tape, and their relative positioning with each other in single glance.)
so when macd line and macd signal line touches each other, that shows that all lower timeframes have reached alignment and big price bar is coming soon, direction of which is set by higher timeframe trend.

now if this all timeframe trends have aligned at points of convergence points of moving averages in multiple timeframes, then divergence with large price action bar is coming( good entry points at convergence points),

i do not take trades when there is divergence of moving average already done, as this will again mean align to equilibrium point 50 ema in counter trend way retracement, again i wait for convergence points on moving averages to appear.

now as both macd and stlm histogram are slow to react to price action as any other indicator and market is fast, so for entry i use price action( as above all timeframens aligns at convergence points , i anticipate big price action in direction of trend, but this is just anticipation, and draw a trendline from one macd line cross point to other cross point, means lower timeframes strength points to lower timeframes weakening point, as in attached image ), once prices starts running fast with big price bar running to break trendline, that means all counter trend traders and sideways market traders are now stuck, i am ready to open up position at break of trendline, prices usually stops at trendline after candle closes, and gives good entry point there, trendline break confirms reversal

besides price action jurik filter set on H4 for trading on H1 gives early arrow that i use to see thing changing, as jma is fast to react ( this is the last templet i posted with indicators) timeframes that can be coupled are H4-H1, H1-M15, M15-M5, M5-M1, which ever timeframe you are trading, M30 does not fit with macd and moving averages atr of prices(13-20 ema zone on each timeframe)

jurik smooth ribbon shows swings for each timeframe, jurik filter settings are for entry and exit signals.

-----------------------------------------------------------------------------------------------------------------

more the timeframes aligned more stronger move is expected.
more the higher timeframes aligned, more longer trend will emerge.
--------------------------------------------------------------------------

so first of all my day begins to find convergence points on instruments that is trending and then take trade as explained above.

loading moving average as posted previously or loading qwma adaptive fls(previously posted templet and indicators here on this thread) shows me convergence points in all timeframes in single chart and make my job easy.

stlm histogram and macd are for momentum change showing and multiple timeframe alignment only,

entry to trade is with price action and jurik filter settings. i have stopped using volume for analysis, as price candle displays much information, and i only take positions in trending market and only in direction of trend, so that even my entry is bit wrong trend will take care of it.

spikes that comes above or below this convergence points (before start of move), on moving averages will not be tested if i have taken right trade and my position will be in profit immediately though i give it a bit of time .

this points highlighted on your image are cross over points of 13 ema and 50 ema( this point is most important to find convergence at 50 ema from where next move begins and price strength comes)

if mace lines have fallen too far away from its centerline, price most likely will not cross back 50 ema immediately, it will first come back and mean reverse to 50 ema and consolidates there and then will try to attempt to cross it.

i am using macd because, market moves for convergence to divergence and macd shows the same , market is that regular in its behaviour from alternate convergence and divergence. higher time frames decides in which direction next convergence and divergence will come


thanks.
mtf macd tape.png


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