In this part 2 about fast reliable crossing averages, I will introduce the formulas for a technique called zero-lagging; to further reduce the lagging of the averages. I will make the specific required formulas available for MetaStock and for Metatrader.
Please note, this is not an invitation to trade using this technique, information given is to be used for training purposes only. Stocata.org will not accept liability for any loss or damage which may arise directly or indirectly from use of or reliance on this information.
Smoothing data with less lag or the so-called zero lag technique have been proposed in Stocks & Commodities magazine by Patrick Mulloy in the February 1994 issue and by John Ehlers in the March 2000 issue. It is a technique to compensate the lag in a moving average.
Sylvain Vervoort http://stocata.org/
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