Third-Generation Moving Average with Double Smoothing Adjustment

Summary

This note presents a third-generation moving average attributed to Dr. Manfred G. Dürschner. It calculates a short-period average, then averages that result over a longer period, and combines the two with a coefficient derived from their relative lengths. The example uses lengths of 7 and 21 and returns the adjusted series as an indicator.

The construction is intended to modify the lag associated with sequential smoothing. The document gives the formula and code but provides no chart, performance results, or comparison against other moving averages. It also does not explain how to choose periods or interpret the indicator as an entry or exit signal. The output therefore serves as a calculation method, not a complete trading strategy; any claimed usefulness for trading would require separate testing across instruments, timeframes, and market conditions.

Key ideas

• The indicator first computes a short-period average of the chosen price series.
• It applies a longer-period average to the short average and combines both using a length-based coefficient.
• The example sets the two periods to 7 and 21.
• The document provides no empirical results or rules for trading from the indicator.

Tags

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