|
PureBytes Links
Trading Reference Links
|
Andrew,
Good point. I checked the date on Blau's book and found it was
published in March of 1995. So both authors were in the same
timeframe. The obvious next question would be whether Blau and
Mulloy used the same methods.
I checked two of Blau's indicators, the ergotic and true strength,
and found them using the simple moving of the moving method. This is
assuming that the indicator formulas that I have are written
correctly.
Mulloy on the other hand uses a "unique composite" method to
supposedly reduce the lag time. I thought that was interesting
enough to not only answer the original question that Arun had but
also point out the differences.
Either way it looks like the middle 90's were an interesting period
of time when it comes to the methods that people were using to
smooth their moving averages.
Thanks for your insight,
Preston
--- In equismetastock@xxxxxxxxxxxxxxx, "Andrew Tomlinson"
<andrew.tomlinson@xxx> wrote:
>
> Another reference is William Blau, 'Momentum, Direction and
Divergence',
> where Blau applies double smoothing to a variety of indicators.
I'm not sure
> who had the idea first.
>
> Andrew
>
> -----Original Message-----
> From: equismetastock@xxxxxxxxxxxxxxx
[mailto:equismetastock@xxxxxxxxxxxxxxx]
> On Behalf Of pumrysh
> Sent: Sunday, July 01, 2007 11:00 PM
> To: equismetastock@xxxxxxxxxxxxxxx
> Subject: [EquisMetaStock Group] Re: Derivation of Tema moving
average
> formula
>
> Arun,
>
> Finally had some time to put together some information for you on
the
> indicator that you requested.
>
> Important to remember that the TEMA and the DEMA were both
developed by
> Patrick Mulloy. They both use unique methods to determine their
final
> values. I believe the following information explains everything.
>
> DEMA and TEMA are unique smoothing indicators developed by Patrick
Mulloy.
> TEMA was originally introduced in the January 1994 issue of
Technical
> Analysis of Stocks & Commodities magazine. As Mr.
> Mulloy explains in the article:
> "Moving averages have a detrimental lag time that increases as the
moving
> average length increases. The solution is a modified version of
exponential
> smoothing with less lag time." TEMA is an acronym that stands for
Triple
> Exponential Moving Average. HOWEVER, the name of this smoothing
technique is
> a bit misleading in that it is not simply a moving average of a
moving
> average of a moving average. It is a unique composite of a single
> exponential moving average, a double exponential moving average,
and a
> triple exponential moving average that provides less lag than
either of the
> three components individually.
>
> {Arun DTMA}
> {Plots either a DEMA or TEMA}
> Plot:= Input("Display [1] Dema[2] Tema",1,2,2); Period:= Input
("What
> Period",1,250,10); EMA1:= Mov(C,Period,E); EMA2:= Mov
(EMA1,Period,E); EMA3:=
> Mov(EMA2,Period,E); Difference:= EMA1 - EMA2; DMA:= EMA1 +
Difference;
> TMA:=(3*(EMA1-EMA2))+EMA3; If(plot=2,TMA,DMA);{end}
>
> Hope this helps,
>
> Preston
Yahoo! Groups Links
<*> To visit your group on the web, go to:
http://groups.yahoo.com/group/equismetastock/
<*> Your email settings:
Individual Email | Traditional
<*> To change settings online go to:
http://groups.yahoo.com/group/equismetastock/join
(Yahoo! ID required)
<*> To change settings via email:
mailto:equismetastock-digest@xxxxxxxxxxxxxxx
mailto:equismetastock-fullfeatured@xxxxxxxxxxxxxxx
<*> To unsubscribe from this group, send an email to:
equismetastock-unsubscribe@xxxxxxxxxxxxxxx
<*> Your use of Yahoo! Groups is subject to:
http://docs.yahoo.com/info/terms/
|