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Modified Moving Average Formula and Its Use as a Trend Filter

Article MQL5 code base
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Summary

This note introduces the Average Modified Moving Average (AMMA), a moving average described as similar to an exponential moving average. It gives a recursive calculation: each value combines the current price with the next bar’s AMMA, weighted by the selected period. A 25-day version is cited as a filter in a commodity futures trading reference.

The description identifies the indicator’s original MQL4 implementation and publication date, but provides no chart details, trading rules, comparative analysis, or performance evidence. It therefore explains the calculation and a suggested filtering role without showing how to choose the period or when to enter and exit trades. The formula’s use of the next bar’s value also means implementation and data orientation matter when interpreting the series; the brief note does not clarify those details.

Key ideas

  • AMMA is presented as a moving average similar to an EMA.
  • Each AMMA value recursively weights price and the next bar’s AMMA according to the selected period.
  • A 25-day AMMA is cited as a filter for commodity futures trading.
  • The note provides no tests or complete trading rules for using the indicator.

Tags

Technical indicatorsFuturesTrend following

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