Sine-Weighted Moving Average Calculation
Summary
The Sine Weighted Moving Average is a price smoother that takes a finite window of observations and assigns weights based on sine values. The weights correspond to positions across the window, with the oldest and newest observations receiving different weights according to the stated sine sequence. The weighted price sum is divided by the sum of those weights, so the result is normalized as an average.
The period controls the window length, while the applied-price setting chooses which price series enters the calculation. The document presents the formula but no comparison with standard moving averages, signal rules, or performance results. It also offers no guidance on selecting a period or interpreting the indicator, so its usefulness as a trading input must be evaluated separately.
Key ideas
- The indicator averages prices over a configurable period using sine-derived weights.
- It normalizes the weighted price sum by the sum of the weights.
- The applied-price parameter determines the price series used in the calculation.
- The document provides a formula but no tested trading rules or performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.