Zero Lag EMA

[shooly76 10]

does anyone here use this EMA? Ive been tinkering around w a 20 period ZLEMA w pretty nice results (so far).

 

if anyone has any info and input on this indicator, or strategies using this, please post here...thanks

[Tams 20]

does anyone here use this EMA? Ive been tinkering around w a 20 period ZLEMA w pretty nice results (so far).

 

if anyone has any info and input on this indicator, or strategies using this, please post here...thanks

 

What "tinkering" did you do?

 

What do you mean by "pretty nice results"?

[nagaraja 10]

looks interesting. how does it work?

 

what's the success ratio you had from it?

 

can you upload the screen shot of how it works

[ScottB 10]

One thing to always remember, no indicator can predict/show something that isn't there. A zero lag indicator to me implies you have simultaneously shown where things were (the ema part) and where things are (the zero lag part).

 

That is great if you can get it but does it make logical sense that those two ends can be achieved at the same time?

 

Best Regards,

Scott

[Burton52 10]

Any EMA will be a lagging indicator you will never get the top or bottom of a cycle but can be profitable. That said, here is my trading plan: I use two EMAs. A 4 period and a 12 period. I also use a MACD with a setting of 6 - 18 -6.

 

If I am bullish:

When the 4 crosses ABOVE the 12 I buy 60-70 delta calls 40 - 60 days out. I buy equal numbers and if the MACD crosses down I close have the position and I sell the other half if the 4 crosses the 12 down.

 

If I am bearish

I do the same type trade buying puts wehn the 4 crosses BELOW the 12

[metalhead 10]

ZLEMA is fun to play around with. You can smooth it with a fast HMA and get a pretty good MA.

 

However, it's still a MA and doesn't really offer any advantages.

 

Trade in the direction of its slope? Get chopped out from time to time.

 

Fade it? Lose in trends.

 

It has the same limitations as any other MA.

[ScottB 10]

metalhead, that is very well put and in my experience the essence of the issue.

 

Best Regards,

Scott

[shooly76 10]

although, i like the ZLEMA so far, I think it is a bit niosy using a 20 period BB.. by noisy I mean that the 20 period ZLEMA is usually too far away from the 20 period SMA (which is what is standard for BB. so basically Ive been getting mixed signals when using BB. So when using BB I prefer to use a standard 20 period EMA, which is closer to the SMA and therefore less noise (for me). keep in mind Im still a newb..and have much to learn

 

I only have sim trade and backtesting results...here r some screnshots w backtest..I cant find my sim shots..may have not saved them.

[r4bb1t 10]

Notice that ZLEMA is exactly same with DEMA.

and personally i don't like it since it's overshoot to the place where never been traded.

[amory 10]

as I see it, you look for a situation where the Candles are clustered all on one side of the green line (Zero-lag (20)

 

enter the trade as soon as a candle closes across the green line, probably indicating change of trend.

 

green thru Red (SMA 14) will confirm the new trend, stay with it!

 

check out the two purple verticles on my chart .. the left one especially.

[maxr 10]

Is this basically the same sort of MA as the Hull Moving Average or HMA? If so, there are several articles on the web explaining the maths of such MAs (Google Hull Moving Average), and their possible benefits and disadvantages.

 

Max

[amory 10]

Is this basically the same sort of MA as the Hull Moving Average or HMA? If so, there are several articles on the web explaining the maths of such MAs (Google Hull Moving Average), and their possible benefits and disadvantages.

 

Max

 

any & all MA's have got something in common .. the Hull is as good as any.

the trick is to find which "crosses" and other combinations .. with candles etc work best in a given environment.

 

I have found the Zero-lag to be quite interesting.

 

another observation is that most MA crossovers give the best results where there is a clearly defined TREND .. at least one will be given the choice between continuing to trade in the same direction or see an END-of-trend type curve - meaning get out!

 

for inst, crossovers can be treacherous when they occur off an indecisive horizontal trend .. to pick the breakout there one must rely on a different set of indicators .. volatility, things like that.

[sf99167 10]

Very interesting. Will implement this in my charts as the software I use here in India, has this technical indicator.

 

Will use these for paper trades and will post the results.

[MiiKiiE 10]

I love the ZLEMA, The dotted bi-color line in panel 1. I only trade in the direction of the ZLEMA.

[whiteEagle 10]

Any EMA will be a lagging indicator you will never get the top or bottom of a cycle but can be profitable. That said, here is my trading plan: I use two EMAs. A 4 period and a 12 period. I also use a MACD with a setting of 6 - 18 -6.

 

If I am bullish:

When the 4 crosses ABOVE the 12 I buy 60-70 delta calls 40 - 60 days out. I buy equal numbers and if the MACD crosses down I close have the position and I sell the other half if the 4 crosses the 12 down.

 

If I am bearish

I do the same type trade buying puts wehn the 4 crosses BELOW the 12

 

I've been experimenting with this 4-bar/12-bar setup, and it looks great.

 

What sort of results have you had with it? And, what time frame works best for you?

 

I'm using it on 30-min/Hourly charts then buying options off the setup.

[cjforex 10]

What's the formula for zlma? In tradestation?

 

Have you tried it on a CRB?

 

Cheers.

[eurotrader 10]

I've probably experimented and tinkered with untold types of moving averages of various lengths, etc. not to mention indicators. At the end of the day I came to the conclusion that it is all a waste of time. My recommendation, take everything off the chart except the price bars and stick with pure price action and how it reacts around previous S&R areas. If you must have a moving average then you are far better off sticking to one that everybody else is watching, like the 20 or 50 SMA.

[whiteEagle 10]

I've probably experimented and tinkered with untold types of moving averages of various lengths, etc. not to mention indicators. At the end of the day I came to the conclusion that it is all a waste of time. My recommendation, take everything off the chart except the price bars and stick with pure price action and how it reacts around previous S&R areas. If you must have a moving average then you are far better off sticking to one that everybody else is watching, like the 20 or 50 SMA.

 

I've heard a lot of traders (i.e. day-traders/forex traders) make this suggestion. Thanks.

 

I've drastically reduced the number of indicators, but I haven't gone "bare bones" yet.

 

I'm just looking for a way to identify the beginning of a turn (i.e., the tops/bottoms) and the changes in both direction and momentum. It looks like short-term MAs help with that.

 

But I agree! If I can trade price action only, I'd be better off.

[cjforex 10]

When I was originally taught about moving averages I was taught to look left.

 

When price approaches a moving average, look left. If you see corresponding support in price action, expect support from the moving average. Ie confluence means more players will act on the same price action giving more credence to your expected behaviour. No matter what the ma.

 

Cheers!

 

-cjforex-

[Dutchie 10]

Almost any Moving Average will have some lag, since the only thing it does is smoothe past prices.

 

What you may think comes close is Jurik's MA a.k.a. JMA.

 

I attached 2 kinds for you, but it will only work on the MT Platform.

 

Cheers

 

Dutchie

Jurik MA's.rar

[maxblaser 10]

plz read mendlbrot and the hurst coefficient, and the magic number is ????