Recursive Moving Average Smoothing and Trigger-Line Signals

Summary

This indicator repeatedly applies a moving-average smoothing process, with the iteration count controlling how smooth the result becomes. The description points to double and triple exponential moving averages as examples of recursive averaging and says the implementation is intended to avoid a fixed loop limit while remaining fast. Users can choose a regular period, an iteration count, and either exponential or simpler smoothing.

A trigger line is calculated from the smoothing iterations, and a crossing between the indicator and trigger line is presented as a trade signal. The indicator can optionally draw arrows at signals. The note advises choosing parameters that do not clutter the chart with excessive signals. It provides no formula details, empirical testing, or guidance on exits and risk controls, and it specifies that the version operates on open-bar prices only, which limits what can be inferred from its signals.

Key ideas

• Repeated smoothing iterations increase the moving average’s smoothness.
• The indicator allows a period, iteration count, and smoothing method to be selected.
• Crossings between the smoothed indicator and its trigger line are treated as trade signals.
• The implementation can mark signals with arrows and is described as using open-bar prices only.

Tags

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