The Drummond Geometry Forum

Regarding your chapter in 'Breakthroughs In Techincal Analysis' published by Bloomberg Press, you refer to envelopes around the PLDot, and related moving averages.

Could I ask how you calculate the envelopes and which moving averages you feel are most compatable?

JS

When we use moving averages, we rely on the short-term mostly, usually 3 periods displaced one period forward, occasionally experimenting with further displacements, but they fall apart when you get too far out. But remember that multiple time period considerations dominate in this approach, and so that gives you more to work with.
Re the envelope formula, we hold that back for our students and for an upcoming book. I can tell you it's a derivation of the dot.

I'll send you in a separate email some links we put together for public inquiries, which may contain some information that could be helpful.