Double Weighted Moving Average Smooths a Linear Weighted Average

Summary

The document describes a double weighted moving average as an indicator that applies the calculation loop for a linear weighted moving average twice. It says this produces smoother values than a standard linear weighted moving average, though it does not define the exact calculation or compare the resulting lag and responsiveness.

For use, the note proposes treating changes in the smoothed line’s slope color as potential signals. It offers no specific entry or exit rules, parameter choices, examples, or backtest results. The signal idea is therefore only a visual heuristic and would need independent evaluation before use in a trading strategy.

Key ideas

• The indicator applies a linear weighted moving average calculation twice.
• The document describes the resulting values as smoother than a single weighted average.
• A change in slope color is proposed as a possible signal.
• No parameter specification or performance evidence is provided.

Tags

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