Relative Moving Average Uses a Period-Based Smoothing Factor

Summary

The document introduces the Relative Moving Average (RMA) as a moving-average indicator related to the exponential moving average. It says the calculation factor is the reciprocal of the selected cycle or period, so the period controls the smoothing behavior: a longer period implies a smaller update factor and a more slowly changing line.

The indicator has one stated input, its calculation period; line style and color are appearance settings. The page offers no formula beyond the factor description, chart example, trading rule, comparative analysis, or evidence of predictive value. It is therefore a brief indicator reference, not a complete method for generating or evaluating trading signals.

Key ideas

• RMA is presented as a variant of the exponential moving average.
• Its calculation factor is the reciprocal of the selected period.
• The period is the only stated calculation input.
• Line type and color are display settings rather than strategy parameters.

Tags

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