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[User Discussion] - Hurst Inverse MA

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[2015-03-15 10:28:34] #1 [Go To First Post]
ehlaban - Posts: 50
For those that have or have read the book The Profit Magic of Stock Transaction Timing of J.M. Hurst here's the Inverse Moving Average indicator.


Hurst Inverse MA.PNG / V - Attached On 2015-03-15 10:27:24 UTC - Size: 53.22 KB - 807 views ehlHurstInverseMa.cpp - Attached On 2015-03-15 10:27:39 UTC - Size: 2.68 KB - 473 views ehlHurstInverseMa.dll - Attached On 2015-03-15 10:27:55 UTC - Size: 14.5 KB - 412 views

[2015-03-15 11:03:14] #2 [Go To First Post]
moonmist - Posts: 127
Hi ehlaban, Thanks for the contribution. I notice that you use typical price in the example. You may be interested in the following post: Also, many traders use indicators wrong, like RSI, when seeking divergences, unless indicator is weighted on highs then another on the lows of price, comparisons should be from close to close. http://www.elitetrader.com/et/index.php?threads/what-are-bollinger-bands-are-best-used-with-macd-rsi-stochs.287201/#post-4040360

[2015-03-15 12:34:16] #3 [Go To First Post]
ehlaban - Posts: 50
I really don't understand the info in the link. Perhaps you can explain in simple words? You can use this and other indicators with other inputs then price as well.

[2015-03-15 14:05:54] #4 [Go To First Post]
moonmist - Posts: 127
IMHO: What Handle123 means was: a) Most people use RSI(close), and compare it with the high or low of corresponding price bars to seek divergence. It is wrong. If I use RSI(close), and look for divergence signals, I need to compare this indicator with the closing price of the corresponding price bars. This is not very convenient. b) An alternative is to use two indicators: RSI(high) and RSI(low). Then, I would compare RSI(high) with high of price bars, and RSI(low) with low of price bars to identify divergence signals. The downside is that instead of one indicator, now I need to study two RSI's. In my experience, most of the time, typical price would allow me to have just one momentum indicator, and compare it with the high/low of corresponding price bars to give reasonably reliable divergence signals. Just my two cents. Date Time Of Last Edit: 2015-03-15 14:27:31

[2016-10-23 14:54:40] #5 [Go To First Post]
michelh - Posts: 159
hi ehlaban, thanks for your contributions. how do you draw the hurst channel in the first place though to highlight the trading cycle before applying the inverse MA? do you do this simply by inspection? I understand that the inverse MA is only useful once you have identified the cycle of interest. I am wondering if there is a better way to identify the cycle length in the first instance. what do you think about fourier for this purpose? any suggestions? thanks M

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