Linear Regression Moving Average from Weighted and Simple Averages

Summary

The document defines a linear regression moving average indicator and gives its calculation in terms of two familiar price averages. For a selected period, it takes three times the linear weighted moving average of closing prices and subtracts twice the simple moving average over the same period. The sole parameter described is the calculation period.

This specifies a compact smoothing formula that combines a weighted average with a simple average, making the weighted component more influential in the resulting value. The document gives no charts, market examples, performance evidence, or trading rules for interpreting the indicator. It also does not explain whether the name corresponds to a conventional regression fit, nor compare the formula with other moving averages. As presented, it is an indicator definition rather than evidence that the measure predicts returns or improves a strategy; any trading use would require separate evaluation.

Key ideas

• The indicator uses one input: the averaging period.
• Its value is three times the linear weighted average minus twice the simple average of closing prices.
• Both averages use the same period.
• The document supplies no trading signals or evidence of predictive performance.

Tags

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