BSAR Trading System - 50 Periods Simple Moving Average

1. What is the significance of 50 SMA?
50 SMA is the average of the closing prices of last 50 periods. It is used to filter the signals generated by BSAR value. This is the implementation of the style of Bert Dohmen of Dohmen Capital Group. So if,


UP TREND

Closing Price is greater than BSAR
AND
BSAR is greater than 50 SMA.

DOWN TREND

Closing Price is less than BSAR
AND
BSAR is less than 50 SMA

SIDEWAYS

When above two conditions are not satisfied.
2. Advanced Technique:
   
   • If Delivered Quantity is different than Traded Quantity,then:
   • Instead of Using 50 SMA we could use 50 Periods Adjusted Volume Weighted Moving Average(AVWMA)
   • Adjusted Volume = Traded Quantity * Percent Delivered Quantity to Traded Quantity /100
   • Adjusted Volume Weighted Price = Multiply Low of the Period (day/week) by the Adjusted Volume
   • Calculate 50 periods Moving average of the Adjusted Volume Weighted Price
   • Use it instead of the 50 SMA in the above technique