One of the biggest issues facing investors in the financial markets is or what is commonly called When is a buy signal a trend move or a good swing trade move and when is it just Understandi ID: 850023
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1 TRADING PAST THE MARKET NOISE One of th
TRADING PAST THE MARKET NOISE One of the biggest issues
2 facing investors in the financial market
facing investors in the financial markets is or what is c
3 ommonly called When is a ''buy signal''
ommonly called When is a ''buy signal'' a ''trend move'',
4 or a good swing trade move, and when is
or a good swing trade move, and when is it just Understa
5 nding the "white noise" was first put fo
nding the "white noise" was first put forward by Louis Je
6 an-Baptiste Alphonse Bachelier 1870 -194
an-Baptiste Alphonse Bachelier 1870 -1946. He was a Frenc
7 h mathematician “white noise", whic
h mathematician “white noise", which was part of his
8 PhD thesis Bachelier's pioneering anal
PhD thesis Bachelier's pioneering analysis of the marke
9 ts contained several ideas laid by Bache
ts contained several ideas laid by Bachelier a century ag
10 o".The move outside the zone of random n
o".The move outside the zone of random noise is what is i
11 dentified as by Rick Martinelli in the
dentified as by Rick Martinelli in the June 2006 issue o
12 f Stock and Commodities Magazine Martine
f Stock and Commodities Magazine Martinelli came up with
13 a standard deviation noise level for GM
a standard deviation noise level for GM at .727. MOBO ba
14 nds will allow one to maintain a longer
nds will allow one to maintain a longer term trading In
15 the financial markets this method of usi
the financial markets this method of using standard devia
16 tion bands, MOBO, adjusted for the ''''
tion bands, MOBO, adjusted for the ''''white noise'''' c
17 an provide a superior trend following sy
an provide a superior trend following system than just us
18 ing a moving average that ignores the la
ing a moving average that ignores the laws of Brownian mo
19 tion. B Brownian Noise Smoothed Noise
tion. B Brownian Noise Smoothed Noise AAPL AAPL BOLLIN
20 GER BANDSDaily AAPL BOLLINGER BANDSDaily
GER BANDSDaily AAPL BOLLINGER BANDSDaily BOLLINGER BANDSM
21 OBO BANDS AAPL Daily BOLLINGER BANDSMOB
OBO BANDS AAPL Daily BOLLINGER BANDSMOBO BANDS AAPL DAIL
22 Y CHART TWO DAY CHARTTWO DAY CHART AAPL
Y CHART TWO DAY CHARTTWO DAY CHART AAPL WEEKLY CHARTBOLL
23 INGER BANDSMOBO BANDS WEEKLY CHARTAAPL
INGER BANDSMOBO BANDS WEEKLY CHARTAAPL MOBO BANDS 50 SM
24 A WEEKLY MONTHLY CHARTAAPL MOBO BANDS 50
A WEEKLY MONTHLY CHARTAAPL MOBO BANDS 50 SMA MONTHLY AAPL
25 50 SMA HOURLYHOURLY CHARTMOBO BANDS AA
50 SMA HOURLYHOURLY CHARTMOBO BANDS AAPL 15 MINUTE CHAR
26 T50 SMA 15 MINUTEMOBO BANDS MOBO BANDS
T50 SMA 15 MINUTEMOBO BANDS MOBO BANDS 50 SMA 5 MINUTEAA
27 PL 5 MINUTE CHART 1 MINUTE CHARTAAPL MOB
PL 5 MINUTE CHART 1 MINUTE CHARTAAPL MOBO BANDS50 SMA 1 M
28 INUTE DJ-30DAILY CHART 2 DAY CHARTDJ-30
INUTE DJ-30DAILY CHART 2 DAY CHARTDJ-30 DJ-30weekly CHART
29 DJ-30WEEKLY CHART50 SMA WEEKLY DJ-30MO
DJ-30WEEKLY CHART50 SMA WEEKLY DJ-30MONTHLY CHART50 SMA
30 MONTHLY MONTHLY CHARTDJ-3050 SMA MONTHL
MONTHLY MONTHLY CHARTDJ-3050 SMA MONTHLY 50 SMA WEEKLYDJ
31 -30WEEKLY CHART NYSEWEEKLY CHART50 SMA W
-30WEEKLY CHART NYSEWEEKLY CHART50 SMA WEEKLY MARKET INTE
32 RNALSNYSE ADVANCE / DECLINE5 MIN. CHART
RNALSNYSE ADVANCE / DECLINE5 MIN. CHART 5 MIN. CHARTMARKE
33 T INTERNALSTRINNYSE SHORT TERM TRADE IND
T INTERNALSTRINNYSE SHORT TERM TRADE INDEX Natural Gas In
34 dexDaily chart LIGHT SWEET CRUDEDAILY CH
dexDaily chart LIGHT SWEET CRUDEDAILY CHARTS COURTESY WOR