Step Moving Average: Sampling Closes at a Fixed Interval

Summary

The document explains a moving-average variant that uses a period and a step size. Instead of including every consecutive closing price, it samples closes at intervals set by the step and averages the selected observations. Its example uses a period of four and a step of two, taking every other close across the calculation window.

With a step of one, the indicator reduces to a simple moving average. This makes the step parameter a way to change which observations contribute to the average, rather than a different weighting scheme. The description supplies a formula and a worked parameter example, but it does not evaluate the indicator’s lag, responsiveness, predictive value, or performance in a trading strategy. Its use as a signal therefore requires separate testing and clear handling of the sampled bars and lookback window.

Key ideas

• The indicator averages closing prices selected at intervals determined by a step size.
• Its period controls the number of sampled prices in the average.
• A step size of one makes the calculation equivalent to a simple moving average.
• The description explains the calculation but provides no evidence of trading performance.

Tags

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