since a few of you asked, here's some
examples of my gap system, tells you what to do with morning gaps
-------------
Here's some examples of my gap system, I use FAZ for examples,
but it works with anything. I have two gapless MA's on this
chart along with a gapless PSAR. What I mean about gapless is
that these two indicators are not affected by gaps. see my
comments.
On today's down, since it was below the MA's and PSAR, it told
you not to buy the gap, but to actually short it.
Thx for posting those -- interesting -- so does the code
add/subtract the value of the gap to where the MAs would otherwise
be? Or more complex beyond describing? Asking because I wonder if
we could somehow think this method out visually or arithmetically
even if not code-wise.
bk -- you can't understand the code, its high math. But go
to the Jurik website and look at the JMA moving average. It's
not what matt is using but it will give you the idea -- its a no
lag (or very little lag) moving average that immediately corrects
for a gap.
yeah it basically subtracts the price difference from the
closing price of the previous day from the opening price, and then
adjusts the equations for this in the MA's and PSAR. What
this does is to make the indicators seamless and not affected by
the gaps. If you really think about it, gaps really mess up
all indicators, sometimes it takes hrs for gaps to be worked out of
the indicators, but if you remove them, then it's a seamless
system.
Futures don't have this proplem since they trade 23 hrs a
day, however individual stocks do, and especially the ETFs and
ultra and triple ETF's, they gap huge up or down several times a
week, when that happen
If you are a TS user, you can can go to the Tradestation forum
and type in" gapless MA" and find .ELDs that will point you in the
right direction. If you are not a TS user, you can just keep
complianing.
Ralph
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since a few of you
Posted by matt on 10th of Mar 2009 at 01:22 pm
Here's some examples of my gap system, I use FAZ for examples, but it works with anything. I have two gapless MA's on this chart along with a gapless PSAR. What I mean about gapless is that these two indicators are not affected by gaps. see my comments.
On today's down, since it was below the MA's and PSAR, it told you not to buy the gap, but to actually short it.
gapless FAZ down.pngfrom today
Gaped up, but since it gapped up above the gapless MA's and PSAR was on a buy, it told you to NOT short the gap and to even buy the gap up
gapless FAZ gap up.png
gaped down but the system told you not to buy the gap down because it was below the gapless MA's and gapless PSAR
gapless FAZ gap down buy.png
Looks like we get a
Posted by blue on 26th of Mar 2009 at 09:28 am
Looks like we get a gap today. The system you show in the toggle was just so intriguing. Would you share what it is telling you today?
Matt's gap system
Posted by junkmaylbox on 11th of Mar 2009 at 07:59 am
A nifty gap system, thanks Matt! I would have missed it -- it was posted during the day-- I happened upon it by a sheer coincidence.
Thx for posting those --
Posted by bkout3 on 10th of Mar 2009 at 01:36 pm
Thx for posting those -- interesting -- so does the code add/subtract the value of the gap to where the MAs would otherwise be? Or more complex beyond describing? Asking because I wonder if we could somehow think this method out visually or arithmetically even if not code-wise.
bk -- you can't understand
Posted by Michael on 10th of Mar 2009 at 01:51 pm
bk -- you can't understand the code, its high math. But go to the Jurik website and look at the JMA moving average. It's not what matt is using but it will give you the idea -- its a no lag (or very little lag) moving average that immediately corrects for a gap.
mine is not Jurik and
Posted by matt on 10th of Mar 2009 at 02:02 pm
mine is not Jurik and is not a zero lag MA. the MA's are simple EMAs with the gap taken out. I actually don't like Jurik's MA's
Matt, What moving averages do you
Posted by poohnana on 10th of Mar 2009 at 02:11 pm
Matt,
What moving averages do you use and on what time frame for this gap system? I could not tell from the charts as they were not all there. Thank
that's pretty cool. Wonder what
Posted by Michael on 10th of Mar 2009 at 02:11 pm
that's pretty cool. Wonder what you don't like about Jurik? Maybe tell me sometime if you have a minute...................
yeah it basically subtracts the
Posted by matt on 10th of Mar 2009 at 01:43 pm
yeah it basically subtracts the price difference from the closing price of the previous day from the opening price, and then adjusts the equations for this in the MA's and PSAR. What this does is to make the indicators seamless and not affected by the gaps. If you really think about it, gaps really mess up all indicators, sometimes it takes hrs for gaps to be worked out of the indicators, but if you remove them, then it's a seamless system.
Futures don't have this proplem since they trade 23 hrs a day, however individual stocks do, and especially the ETFs and ultra and triple ETF's, they gap huge up or down several times a week, when that happen
bone headed simple. I'll try
Posted by matt on 10th of Mar 2009 at 01:24 pm
bone headed simple. I'll try to give my thoughts on days when the market gaps up big or down big i.e. whether the system says to buy or sell.
Thank you. We especially appreciate
Posted by drsadapt on 10th of Mar 2009 at 01:41 pm
Thank you. We especially appreciate the heads up from systems which we don't have ready access to.
drsadapt
Posted by ralph on 10th of Mar 2009 at 02:12 pm
If you are a TS user, you can can go to the Tradestation forum and type in" gapless MA" and find .ELDs that will point you in the right direction. If you are not a TS user, you can just keep complianing.
Ralph