AIS Smoothed Linear Trend: Velocity-Adjusted Moving Averages

Summary

The indicator aims to reduce the lag of a simple moving average by incorporating price velocity. It offers three ways to measure velocity: central velocity for a smoother value, forward velocity referenced to the current bar for greater sensitivity to recent changes, and backward velocity referenced to the initial bar to retain historical movement information.

The description says any of the three options can serve as an SMA alternative, but provides no performance tests, trading rules, or evidence that lag reduction improves results. Its behavior depends on the selected velocity type and period, and the text does not specify the calculation details for each option.

Key ideas

• The indicator combines price averaging with velocity measurements to address SMA lag.
• Central velocity is described as producing a smoother value.
• Forward velocity emphasizes recent price changes by referencing the current bar.
• Backward velocity incorporates movement relative to the initial bar.
• The indicator exposes velocity type and period as parameters.

Tags

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