Moving averages and Time Frame

phanz · 2021-08-09T04:31:02+00:00

Hi, Just a general qn, and forgive me if it sounds stupid. I was playing around with the TimeFrame function in PRT. Its useful definitely, but just curious, is a Simple Moving Average (SMA) of 200 period in the 4 hour time frame equivalent to a SMA of 50 period in the 1 day timeframe? ie, 4H-SMA(200) = 1D-SMA(50) ? if its not the same exactly to the dot, issit a very close approximation? Any limitation of modelling it like this? Tks

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08/09/2021 at 5:31 AM #174953 quote

phanz
Participant

Average

Hi,

Just a general qn, and forgive me if it sounds stupid. I was playing around with the TimeFrame function in PRT. Its useful definitely, but just curious, is a Simple Moving Average (SMA) of 200 period in the 4 hour time frame equivalent to a SMA of 50 period in the 1 day timeframe?

ie, 4H-SMA(200) = 1D-SMA(50) ? if its not the same exactly to the dot, issit a very close approximation? Any limitation of modelling it like this?

Tks

08/09/2021 at 10:47 AM #174962 quote

robertogozzi
Moderator

Legend

No, you usually can’t, due to their difference in accuracy, which is small or none at all with SMAs, much higher with EMAs and all other indicators.

Thanks to the MTF support you can avoid doing math on indicators’ periods, simply calculating them in their own desired TF.

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08/10/2021 at 6:25 AM #174985 quote

JS
Participant

Master

When your system is lineair (like a SMA) there are no limitations to model it like that.

For non-lineair systems (like a EMA) it is not the correct way.

(lineair systems are mostly time invariant and non-lineair systems are not)

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08/10/2021 at 6:58 AM #174986 quote

JS
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Most lineair systems are time invariant while non-lineair systems are not.

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Moving averages and Time Frame

General Trading: Market Analysis & Manual Trading

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This topic contains 3 replies,
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5 years, 1 month ago.

Topic Details

Forum:	General Trading: Market Analysis & Manual Trading
Language:	English
Started:	08/09/2021
Status:	Active
Attachments:	No files