Wednesday reports normally contain extended comments as a “focus” section. However, today, due to the holiday line-up this year, we will instead focus on charts only and also provide an abbreviated news review on the UrbanSurvival.com site. A Focus piece will be presented Saturday.
And, if that’s not screwy enough for you, we will also be doing a special update on the UrbanSurvival site at about 8:15 AM Central to include the latest Case-Shiller/S&P/CoreLogic Housing numbers.
More for Subscribers ||| SUBSCRIBE NOW! ||| Subscriber Help Center
HULL MOVING AVERAGE:
I stumbled across this HMA today, & it seems to eliminate the lag problem associated with moving averages.
There are many types of moving averages, the most basic being the Simple Moving Average (SMA). Of all the moving averages the SMA lags price the most. The Exponential and Weighted Moving Averages were developed to address this lag by placing more emphasis on more recent data. The Hull Moving Average (HMA), developed by Alan Hull, is an extremely fast and smooth moving average. In fact, the HMA almost eliminates lag altogether and manages to improve smoothing at the same time.
Calculation: Calculate a Weighted Moving Average with period n / 2 and multiply it by 2. Calculate a Weighted Moving Average for period n and subtract if from step 1. Calculate a Weighted Moving Average with period sqrt(n) using the data from step 2.
HMA= WMA(2*WMA(n/2) ? WMA(n)),sqrt(n))
Or just have your charting program calculate it for you.