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I assume that you are aware that the filtration characteristics of the two
averages, even with "equivalent" time spans, are quite different and that
the shapes of the outputs will often differ significantly.
I don't understand the problem with the simple MA - the only difference is
that you must maintain a list of the points included within the current
"window".
Regards,
Carroll
----- Original Message -----
From: "Philip Lane" <philtronics@xxxxxxxxxxx>
To: "Omega List" <omega-list@xxxxxxxxxx>
Sent: Tuesday, May 26, 2009 7:32 AM
Subject: Simple vs. Exponential MA periods
> Hello,
>
> This guy I know has been watching the Oliver Velez videos (have you seen
> them?), and consequently wants me to program 40-day and a 20-day simple
> moving averages for the web site.
>
> Now we all know that there's nothing magic about these particular
averages.
> They look great on the videos, on those particular stocks, but other
stocks
> probably would fit better with different periods. But I'd like to give him
> what he wants.
>
> Unfortunately a Simple average is not so simple to calulate. An Xma is
much
> easier. So I was wondering if anybody knows generally how the periods
would
> compare to get a roughly equivalent. For example, I know that a
65-period
> Xma is "about" equivalent to a 50-period simple average.
>
> Thank you,
>
> Phil
> www.gigascanner.com
> www.gigastockpicks.com
>
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