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Fred,
consider the following 3 day simple and "ultra-smooth" LOL example :
day1 - $55
day2 - $56
day3 - $58
day4 - $60
simple average:
3 day simple moving average on day#3 (55+56+58)/3 = 56.33
3 day simple moving average on day#4 (56+58+60)/3 = 58
now the smooth stuff:
((55+56+58+60) - 56.33) /3 = 57.89
(DAY1+DAY2+DAY3+DAY4) - 3BarSimpleMovingAverage(DAY1 THRU DAY3) /3
thanks
Paul
> -----Original Message-----
> From: owner-metastock@xxxxxxxxxxxxx
> [mailto:owner-metastock@xxxxxxxxxxxxx]On Behalf Of Fred Naef
> Sent: Saturday, July 25, 1998 10:32 AM
> To: metastock@xxxxxxxxxxxxx
> Subject: Re: moving average
>
>
> Paul wrote:
> >
> > hello,
> >
> > I need an average that is similar to a simple average but instead of
> > subtracting the earliest bar (when adding new one) I would
> subtract average
> > of ,say 5 latest bars (in case of a 5 bar average). thanks
> > Paul
> Paul:
>
> Don't really get your point, but I suggest you look at exponential
> moving averages or weighted averages: they are a closer fit than
> Simple moving averages.
>
>
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