Modified Moving Average: A Slope-Adjusted Simple Average

Summary

The Modified Moving Average is presented as a way to reduce lag relative to a simple moving average. It combines an SMA of the selected price over a chosen period with a slope adjustment, using a period-based scaling factor. The document identifies the period and applied price as inputs and gives the formula components used to calculate the adjustment.

The explanation cites a January 2000 article in Stocks & Commodities but supplies no performance tests, comparison results, or trading rules. It does not describe how to interpret indicator values or choose parameters, so the claimed reduction in lag cannot be assessed from this material alone. Treat it as an indicator definition rather than evidence of a profitable strategy.

Key ideas

• The indicator starts with a simple moving average of the selected price over the chosen period.
• A slope term is added to the average, scaled by period-based factors.
• The document describes the indicator as having relatively little lag.
• No performance evidence or entry and exit rules are provided.

Tags

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