What is the meaning of the term non-lagging (in relation to the indicator)? - page 3
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So that there is no ambiguity about which lag we are talking about.
Colour change - the sell signal appeared 5 bars late in relation to the bar where the zigzag extremum was.
A correctly made EMA has about a third less group delay than the SMA.
Yes, that's not correct, I meant calculations without time weighting.
khorosh:
What is the meaning of the term lag-free (in relation to the indicator)?
Is there a need for one at all? If it is not lagging, it means that it will react on small price movements and will give a lot of false signals. Or does it mean it does not react on such small movements, but it does not lag when a significant price movement begins? But is it possible?
In a nutshell, averaging should be applied to both sides (future and past) to minimize the discrepancy with the original; when the filter is applied to past values only, a lag effect occurs; it can be calculated as the maximum discrepancy by moving the filtered series into the future relative to the initial one, it is half a period for SMA. You can't get a "non-lagging indicator" without futures period data, the conclusion - "non-lagging indicators" cannot exist, the same as the perpetual motion. If someone suggests something like that, it is 100% fake, some kind of tricks, some kind of "magnets".
If you don't have data from the future, you cannot get a "non-lagging indicator", and since you cannot have data from the future according to the laws of cause and effect, the conclusion is that "non-lagging indicators" cannot exist in principle, just like a perpetual motion machine. If someone suggests something like that, it is 100% a fake, some kind of tricks, some kind of "magnets".
You can. It's a medical fact. And it doesn't mean knowledge of the future at all, we still don't know it.
You can. This is a medical fact. And it doesn't mean knowing the future at all, we still don't know it.
What does this have to do with medicine? It's the elementary basics of DSP.
Non-lagging indicators are probabilistic indicators, when we know the price of the event already now and the probability of the subsequent outcome is known from statistical observations at the current moment in time.
For example, these are significant levels, or the same indicator indicators, for example RSI 30/70 levels are significant for the market and knowing this level on the hourly bar you can on a 15-minute you can already estimate what will happen if the price moves from the current point in the direction of the level and crosses it.
What does this have to do with medicine? It's basic DSP basics.
Actually, signal processing is my specialty. And that, constructing non-lagging ones, is really elementary basics.
Really? On the SB, will you show me? I can do it on a sine wave, too.)
Non-lagging indicators are probabilistic indicators, when we know the price of the event already now and the probability of the subsequent outcome is known from statistical observations at the current moment in time.
For example these are significant levels, or the same indicator values, for example RSI 30/70 levels are significant for the market and knowing this level on the hourly bar you can on a 15-minute chart look out what happens if the price moves from the current point in the direction of the level and crosses it.
The "probabilistic", "statistical", "with MO" are all about predicting the fragment "from the right" that is missing for "perfect filtering", and considering that the quality of such predictions (obtained from public data) with the most sophisticated MO is 52-55%, it doesn't make a difference.
"Probabilistic", "statistical", "with MO" are all about how to predict the fragment "from the right" which is missing for "perfect filtering", and given that the quality of such predictions (obtained from public data) with the most sophisticated MO is 52-55%, it does not make a difference.
The results may be different in MO, and higher than 55%, and for some strategies even 50% is very good - trend ones for example.
But I'm talking about a qualitatively different approach - when we don't wait for the indicator readings, but make a decision a couple of steps ahead knowing what the indicator will show, if the price moves in this or that direction. This approach allows us to consider the possibilities to enter a position now, if we know that the RSI is likely to bounce, and stops can be set very low.