Moving averages and Time Frame

• 08/09/2021 at 5:31 AM #174953
  phanz

  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

  

  phanz

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

  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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  phanz

  

  robertogozzi

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

  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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  JS

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

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

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  JS

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