Monday, 3 October 2011

Moving Average Derivatives Applied to GMMA Methods

So, I spent every moment of my spare time this weekend to finding a better Moving Average to be applied to the Guppy Multiple Moving Average idea, and here is what I got (includes standard 200 EMA white line):

Hull Moving Average:

NonLag Moving Average:

SSL (fast):

Step Moving Average:

Volume Weighted Moving Average (VWMA):

Kaufman Adaptive Moving Average (KAMA):

Exponential Moving Average with colour price cross (EMA):

This is what I got so far (still plenty more moving averages that I can play with: Fractal Moving Averages, Linear Weighted Moving Average (LWMA), Wilder Exponential Moving Average (WEMA), etc...). You may have noticed that some of these charts have the moving averages change colours, this is because the price crosses the line, and results in a colour change; a useful visual. 
So far, I think the Kaufman Adaptive Moving Average (KAMA) is the best alternative to the standard GMMA. I haven't tested this fully, but I think the KAMA could work as an earlier indicator than the GMMA; allowing for more trades to take place. The EMA with the colour price cross is also very useful in that the colour change can give you a better perspective as to when an entry point is merited.

As for the other GMMA hybrids, I think could tweak them a little more, but I don't think I'll get the same results as the KAMA.