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Hi John
I've seen this advertised regularly. I have no idea how it works, but by
eye-ball it looks like a 5 day MA advanced 3 days. Murray Ruggiero sells a
Trade Station version for $205US. His catalogue (1-800-211-9785) says this
"... It differs from standard adaptive moving averages in that it offers
higher correlation to the actual price with maximum smoothness." "...is
great for .... data preprocessing for developing a neural network. We use
this adaptive moving average as part of many of the proprietary systems wh
have built for our clients."
For me, the concern with any MA is to understand how it differs from the
standard SMA. IMHO, adaptive indicators need to be "always" paired with a
"viewing" indicator, i.e., volatility indicator, etc. Otherwise you rapidly
lose track of where you are at.
Best wishes
Walter
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