Recursive Moving Averages and a Crossover Trigger Line

Summary

A Recursive Moving Average applies repeated smoothing to a price series, with the number of iterations controlling how smooth the result becomes. The description connects this approach to indicators such as double and triple exponential moving averages and says it is designed to avoid a loop limit while retaining speed.

The method exposes a regular period, an iteration count, and a choice of exponential or simpler smoothing. It also defines a trigger line as the average of the smoothing iterations; a crossing between that line and the recursive average is presented as a trade signal, with optional arrows marking signals on a chart. The document provides no formula details, parameter values, market examples, backtest results, or guidance on false signals and lag, so it explains the indicator's structure but does not establish its trading effectiveness.

Key ideas

• Repeated smoothing is used to build a moving average whose smoothness depends on the iteration count.
• The indicator offers a regular lookback period and a choice of smoothing method.
• Its trigger line is described as the average of the smoothing iterations.
• Crossings between the recursive average and trigger line are treated as trade signals.
• The description gives no empirical evidence or guidance on choosing parameters.

Tags

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