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Modified Moving Average



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For those around here wondering what that awful formula
was, it's from the Jan 2000 TASC describing a form of
weighted moving average. Here's a 20 period version I like.
------------------
MMA-20
{Modified Moving Average - TASC Jan 2000 by Joe Sharp} 
n:=20;
tn:=Mov(C,n,S);
s1:=((n-1)/2)*C + ((n-3)/2)*Ref(C,-1) + ((n-5)/2)*Ref(C,-2)
   + ((n-7)/2)*Ref(C,-3)   + ((n-9)/2)*Ref(C,-4)
  + ((n-11)/2)*Ref(C,-5)  + ((n-13)/2)*Ref(C,-6)
  + ((n-15)/2)*Ref(C,-7)  + ((n-17)/2)*Ref(C,-8)
  + ((n-19)/2)*Ref(C,-9)  + ((n-21)/2)*Ref(C,-10)
 + ((n-23)/2)*Ref(C,-11) + ((n-25)/2)*Ref(C,-12)
 + ((n-27)/2)*Ref(C,-13) + ((n-29)/2)*Ref(C,-14)
 + ((n-31)/2)*Ref(C,-15) + ((n-33)/2)*Ref(C,-16)
 + ((n-35)/2)*Ref(C,-17) + ((n-37)/2)*Ref(C,-18)
 + ((n-39)/2)*Ref(C,-19);
tn+(6*s1)/((n+1)*n);
--------------------

Plotted against a 20 EMA it's immediately obvious that it has
much the same characteristics as its namesake, Guppy MMA.
Maybe this isn't so surprising since in both cases we're
effectively comparing longer against shorter term MAs.

Have a look at the attached March Soybeans and check out the
inflection points in the Guppy MMA with the MMA-20 separation
from the EMA.  I think it's giving a clearer signal.  You may have
been tempted to go long in late Sep based on the Guppy MMA
but the MMA-20 was still pointing hard down and didn't turn up
until the second (higher) low in early Oct.  

I think current action resembles late August - triangle measurement
gives target near 541.

Cheers
Jeff.
Attachment Converted: "f:\eudora\attach\MMA1.gif"

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