RE: Advance Decline Line
(2020-04-28, 10:44 PM)isatrader Wrote:(2020-04-28, 09:43 PM)pcabc Wrote: Regarding the 10 and 30 day EMAs - did you pick those for a reason, do they have any special significance?
There was a reason. But I can't remember exactly now as I set it up around 10 years ago. But I do know the McClellan Oscillator https://www.investopedia.com/terms/m/mcc...llator.asp is made up of the 19 day EMA and the 39 day EMA of the advance decline line data. So the 10 and 30 day EMAs that I use are just a bit faster and obviously tie in with Stage Analysis.
I think with things like these you could use any combination of short and medium term MAs and the results wouldn't be much different. i.e isn't the MACD a 12 day EMA – 26 day EMA for example.
If it has worked well for you that is explicitly a good reason to not change it. I've been using 20 day SMAs for a while, I think from Trendavisor, but it is a popular time period. I formed the impression for recent years that 150 day MA was very slow and 50 day SMA was still quite slow for a trader. So the 20 day SMA is my 'is it above the 20 day SMA then just leave it alone' test.