[OT] avgs and moving avgs

[Bill Cunningham]

I am kind of reluctant to use technical analysis of securities if they
are not mathematically sound. I prefer statistics myself but is ther such a
thing as an exp. moving average or average. I keep all data in my averages
and don't use MAs so much as I analyze these formulas I will write functions
for them. Here's two pages is this for real?

http://en.wikipedia.org/wiki/Moving_average_(finance)#Modified_Moving_Average
http://www.pandacash.com/technical-analysis/moving-average/exponential.htm

Bill

 

[Bill Cunningham]

I am kind of reluctant to use technical analysis of securities if they
are not mathematically sound. I prefer statistics myself but is ther such
a thing as an exp. moving average or average. I keep all data in my
averages and don't use MAs so much as I analyze these formulas I will
write functions for them. Here's two pages is this for real?

http://en.wikipedia.org/wiki/Moving_average_(finance)#Modified_Moving_Average
http://www.pandacash.com/technical-analysis/moving-average/exponential.htm

Bill

http://en.wikipedia.org/wiki/Moving_average#Exponential_moving_average

Maybe it's this page.

Thanks to those concerned.

 

[user923005]

http://en.wikipedia.org/wiki/Moving_average#Exponential_moving_average

Maybe it's this page.

Thanks to those concerned.

First, you must ask yourself, "What's the point of a moving average?"

The idea of a moving average is to smooth the data so that (for
instance) hourly or daily ups and downs get the jitter removed so that
we can examine weekly or monthy trends. We may also average over
longer periods so that we can compare long time series data to see
seasonal trends or trends over decades or even centuries. Typically,
this is created via a ring buffer, but other techniques are used as
well.

A moving average is nothing more than a sliding window, where you
decide that everything within the sliding window will be combined as
an average figure so that the tiny jitter values can be smoothed to
see the overall trend more clearly.

I suggest that posts that are strictly concered with "moving average"
might be better posed on if you have questions
about the efficiency or nature of the algorithm, on for questions about the mathematical basis and here on
if you have specific questions about an
implementation of your algorithm in C and you want to know if some
fragment is correct.