Ahrens Moving Average: Calculation from Median Price and Prior Values

Summary

The document describes the Ahrens Moving Average, an indicator attributed to Richard D. Ahrens and introduced in a technical analysis article. It identifies one configurable input, the calculation period, and gives a recursive calculation. The update adjusts the previous indicator value by the difference between median price and a median average, divided by the period. Median price is the midpoint of the current high and low; the median average combines the previous indicator value with the indicator value from one period earlier.

This is a compact definition of how the indicator is computed, rather than a discussion of how to interpret its signals. The document provides no chart examples, comparison with other averages, parameter guidance, backtest, or evidence that it improves trading outcomes. Readers can learn its inputs and calculation structure, but would need additional analysis to assess its responsiveness, suitability across markets, or usefulness in a strategy.

Key ideas

• The Ahrens Moving Average uses the period as its configurable input.
• Its update adjusts the prior indicator value using the gap between median price and a median average.
• Median price is calculated from the current high and low.
• The description explains the calculation but gives no signal rules or performance evidence.

Tags

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