Turning Point Moving Average System - Thoughts? (Turning Point Mov Avg System - Thoughts?)
I have been working on a moving average system based on an envelope type idea. On the face of it, it can tell you fairly accurately whether a move has ended and whether it has reversed. I'm just trying out this idea so any ideas on how to improve it would be greatly appreciated. I'm not sure if I would use it to generate buy/sell signals, but just to tell me if the move is over. Of course there are other ways to do the same thing...
The settings are as follows:
A 4-cycle SMA at high level
A 4-period SMA is low
A 2-period moving average at closing
It seems to work on most timeframes but suffers on lower timeframes. I have tried using it on longer timeframes to spot reversals, but on smaller timeframes (15 minutes and 5 minutes) to get crossover signals. I'm sure the period of the average could be adjusted to prevent fluctuations, but the accuracy would decrease, or rather it might pick up more important signals. It can also tell you whether a trend is strong or weak by whether the 2-period average is outside the 4-period average. Additionally, if the yellow average line is between the upper and lower lines, it is less volatile and in a sideways environment. interesting...
Anyway, I appreciate your thoughts and I'm open to ideas.
Thank you and happy trading!
(See image below for "curated examples")
The settings are as follows:
A 4-cycle SMA at high level
A 4-period SMA is low
A 2-period moving average at closing
It seems to work on most timeframes but suffers on lower timeframes. I have tried using it on longer timeframes to spot reversals, but on smaller timeframes (15 minutes and 5 minutes) to get crossover signals. I'm sure the period of the average could be adjusted to prevent fluctuations, but the accuracy would decrease, or rather it might pick up more important signals. It can also tell you whether a trend is strong or weak by whether the 2-period average is outside the 4-period average. Additionally, if the yellow average line is between the upper and lower lines, it is less volatile and in a sideways environment. interesting...
Anyway, I appreciate your thoughts and I'm open to ideas.
Thank you and happy trading!
(See image below for "curated examples")


















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