Nirvana Systems Blog

Smoothing Price without Introducing Lag @ 5:30pm EDT

Written by Nirvana Systems | Jul 26, 2021 6:43:12 PM

Join us today @ 5:30pm EDT on Market Pulse Dot Live for...

 

The Hull Moving Average

 

Many traders use moving averages in order to reduce the noise, or smooth, price activity. However, when you smooth price with an average, you are creating a lag in the indicators reading. While moving averages like Exponential Moving Averages and Weighted Moving Averages can help reduce lag, they are still prone to late readings.
But lag is significantly reduced, it not eliminated, with the Hull Moving Average. The HMA as developed by Alan Hull, and it uses weighted moving averages and dampens the smoothing effect (and resulting lag) by using the square root of the period instead of the actual period. This results in an excellent noise reduction while cutting the indicator lag drastically.

 

Stocks To Watch with: The Ultimate Indicator Suite

With so many indicators available to traders, it can be difficult to find the indicators that can really help us with different aspects in trading. We surveyed our customers on the indicators they use that are working best in this market. Our development team combined the customer input with the studies that we were conducting in house and went to work evaluating the results. Our research discovered three stand out indicators.

The quality of these indicators is so good that we gave them the name “The Ultimate Indicators”. By harnessing the power of the Hull Moving Average, Mansfield Relative Strength, and the Double Stochastic, we were able to create three of our best Trading Strategies.


Learn more about Nirvana's plugin, The Ultimate Indicator Suite

 

 

 

 

Join us every Monday/Wednesday at 5:30pm EDT

We will be broadcasting live from both:

 

 

What is Market Pulse Dot Live (MPL)?

MPL is complementary content about trading the current market with some technical analysis education too. 

A typical show covers the following topics:

  • Overview of Today's Broad Market
  • Summary of Groups on the Move
  • Technical Analysis Lesson
  • Stocks to Watch 

 

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Join us every Monday and Wednesday at 5:30pm EDT.

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Nirvana Systems has been creating Trading software since the 1990's. Nirvana was founded on the concept of automated trading, our CEO, Ed Downs, fell in love with the potential profits offered by the markets but quickly realized that emotions were getting in the way of success and it was too difficult to find good candidates. Nirvana Systems has been creating software that automates Trading ever since.