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Greetings:
I have a requirement to plot a smoothed moving average projected into the future and to be able to see the moving average data points beyond the end of the data. I understand that the last data points can only be seen from Built-in studies. I would greatly appreciate options to develop a smoothed moving average from the existing Built-in moving average or the ability to construct a Built-in formula myself. The method for the smoothed moving average can be found below.
I see other versions of Bill Williams moving averages on the files section, but they do not use the SMOOTHED moving average. My finding are that the (H+L)/2 does not calculate the averages as Dr. Williams prescribes. I current believe that the smoothing method is found below although I have yet verified this for certain.
Thanks;
Burt
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Smooth:
A Smoothed Moving Average is similar to a simple moving average. However, in a smoothed moving average, rather than subtracting the oldest value the previous smoothed average value is subtracted. For the following example the PERIOD equals 3.
The first value for a Smoothed Moving Average is determined by the formula SMOOTH. It is plotted on the chart at the third bar from the left side of the screen.
· SMOOTH =(PRICE 1 + PRICE 2 + PRICE 3)/PERIOD
· The next value would be plotted at the fourth bar from the left side of the screen.
· SMOOTH2 = (PREVIOUS SUM - PREVIOUS AVG + PRICE 4)/PERIOD
· For the second calculation of SMOOTH, PREVIOUS SUM is the sum of PRICE 1 + PRICE 2 + PRICE 3; and PREVIOUS AVG is the initial value of SMOOTH.
· The next value would be plotted at the fifth bar from the left side of the screen. SMOOTH = (PREVIOUS SUM - PREVIOUS AVG + PRICE 5)/PERIOD. Subsequent values would be determined by subtracting the PREVIOUS AVG from the PREVIOUS SUM, adding the next more recent PRICE, then dividing by the PERIOD.
Example: If the values 1,2,3,4 and 5 were reported for the first five bars the three-period smoothed moving averages for those bars would be calculated as follows:
(1+2 +3)/3 = 2 This is the first value and would be plotted on the third bar from the left.
(6 - 2 + 4)/3 = 2.67 This second value would be plotted on the fourth bar from the left.
(8 - 2.67+5)/3 = 3.44 This third value would be plotted on the fifth bar from the left, and so on.
__________________
Burtz
I have a requirement to plot a smoothed moving average projected into the future and to be able to see the moving average data points beyond the end of the data. I understand that the last data points can only be seen from Built-in studies. I would greatly appreciate options to develop a smoothed moving average from the existing Built-in moving average or the ability to construct a Built-in formula myself. The method for the smoothed moving average can be found below.
I see other versions of Bill Williams moving averages on the files section, but they do not use the SMOOTHED moving average. My finding are that the (H+L)/2 does not calculate the averages as Dr. Williams prescribes. I current believe that the smoothing method is found below although I have yet verified this for certain.
Thanks;
Burt
-----------------
Smooth:
A Smoothed Moving Average is similar to a simple moving average. However, in a smoothed moving average, rather than subtracting the oldest value the previous smoothed average value is subtracted. For the following example the PERIOD equals 3.
The first value for a Smoothed Moving Average is determined by the formula SMOOTH. It is plotted on the chart at the third bar from the left side of the screen.
· SMOOTH =(PRICE 1 + PRICE 2 + PRICE 3)/PERIOD
· The next value would be plotted at the fourth bar from the left side of the screen.
· SMOOTH2 = (PREVIOUS SUM - PREVIOUS AVG + PRICE 4)/PERIOD
· For the second calculation of SMOOTH, PREVIOUS SUM is the sum of PRICE 1 + PRICE 2 + PRICE 3; and PREVIOUS AVG is the initial value of SMOOTH.
· The next value would be plotted at the fifth bar from the left side of the screen. SMOOTH = (PREVIOUS SUM - PREVIOUS AVG + PRICE 5)/PERIOD. Subsequent values would be determined by subtracting the PREVIOUS AVG from the PREVIOUS SUM, adding the next more recent PRICE, then dividing by the PERIOD.
Example: If the values 1,2,3,4 and 5 were reported for the first five bars the three-period smoothed moving averages for those bars would be calculated as follows:
(1+2 +3)/3 = 2 This is the first value and would be plotted on the third bar from the left.
(6 - 2 + 4)/3 = 2.67 This second value would be plotted on the fourth bar from the left.
(8 - 2.67+5)/3 = 3.44 This third value would be plotted on the fifth bar from the left, and so on.
__________________
Burtz