Averaging Moving Averages with Additive or Multiplicative Periods

Summary

The document describes an indicator that averages several moving-average values calculated from one applied price and moving-average method. Users set a base period, the number of averages, and a period increment scheme. Under additive increments, each successive moving average uses a period longer by a fixed coefficient; under multiplicative increments, each period is multiplied by that coefficient.

Its example starts with a base period of 5, uses a coefficient of 2, and averages five moving averages. The resulting periods are 5, 7, 9, 11, and 13 with additive increments, or 5, 10, 20, 40, and 80 with multiplicative increments. The text explains the calculation but gives no trading rules, comparison against a standard moving average, or performance evidence. It does not discuss how to choose the base period, coefficient, or count, so those settings require independent evaluation.

Key ideas

• The indicator takes the arithmetic average of multiple moving averages.
• Users choose the base moving-average period, method, applied price, number of averages, and increment settings.
• Additive increments increase periods by a fixed amount at each step.
• Multiplicative increments scale each successive period by a fixed factor.
• The example shows how the two period schemes produce different blends, but it provides no evidence of trading performance.

Tags

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