A Three-SMA Combination Proposed as a Faster Moving Average

Summary

The document presents an experimental moving-average formula built from simple moving averages at three multiples of a base period. It first describes one arrangement of the three averages, then reverses the sign of the middle term. The author says the revised combination appears to fit price more closely and respond faster than four basic averages calculated with the same period. It is intended for use like another price average.

No definition of the four comparison averages, chart, data sample, parameter guidance, or quantitative test is supplied. The claimed reduction in lag is therefore an observation from the author’s experimentation, not documented evidence of robust performance. Combining averages with opposing signs may also change noise sensitivity and produce behavior that differs across markets and settings. The document does not establish what the acronym RMA means, nor does it explain how the indicator should generate entries, exits, or risk controls. Traders would need to validate the calculation and test it on their own data before relying on it.

Key ideas

• The indicator combines three simple moving averages calculated over scaled versions of a base period.
• The revised formula changes the sign of the middle moving-average term.
• The author reports that the revised version seemed faster than four basic averages at the same period.
• The document supplies no charts, formal comparison, or trading results to verify that observation.
• The average is presented as a general-purpose price indicator without entry or exit rules.

Tags

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