[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

Re: help



PureBytes Links

Trading Reference Links

At 04:23 AM 2/5/98 EST, JamesinLA@xxxxxxx wrote:
>Hope someone can help me with this.  Maybe I'm the only one who doesn't
>already know this?  Anyway, I'm reading an old book about systems and it
talks
>about moving averages in terms of "0.04 exponential average" and "0.20
>exponential", etc.  It says the 0.04 average is the equivalent of a 49-day or
>10 week average.  Anyway, my question is how is this being computed?  Please
>help.
>
>Jim
>

I believe it's talking about the alpha factor.  The formula has a factor by 
that name which is used to control the "nervousness" or sensitivity.  The
larger the alpha the more the recent past influences the average computed.

Pete


petena9090@xxxxxxxxxxxxxx




  • References:
    • help
      • From: JamesinLA