A Faster, Smoothed Exponential Moving Average Variation

Summary

The document describes a modified exponential moving average intended to change how quickly the average responds while adding implicit smoothing. EMA is presented as a first-order filter whose weights decline exponentially with age, and whose recursive calculation needs only the previous value. That compact structure makes it convenient to adapt or combine with other calculations.

The variation introduces a fractional speed setting: raising speed makes the average respond faster without changing its nominal period. The author also says it produces a smoother line than a regular EMA at similar values, so the plotted slope is smoother. A comparison is mentioned using a speed setting of 1.8, but no chart data, formula, or quantitative performance evidence is included. The indicator is intended for general use wherever an average would be used. The description does not define the calculation, explain parameter selection, or show whether the smoothing and responsiveness tradeoff improves trading results.

Key ideas

• EMA recursively uses the prior value while exponentially reducing the influence of older observations.
• The variation adds a fractional speed control that changes responsiveness without changing the stated period.
• The author describes the resulting line as smoother than a regular EMA at similar values.
• The document gives no formula or trading test to establish the indicator’s practical advantage.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.