Time-Averaged Moving Average: Smoothing Prices Across a Range
Summary
The document describes a Time-Averaged Moving Average (TAMA), a smoothed price line built by applying a moving average to a Time-Averaged Price (TAP) calculation. Users can choose the calculation period, applied price, smoothing period, and smoothing method. The applied price can use different price inputs, with example plots for close, high, low, median, and weighted prices.
The stated relationship is that TAMA applies a selected moving-average method to TAP over the smoothing period. The document says the underlying time-averaged price calculation depends on the selected applied price, but the displayed source omits its defining formula. It provides example charts rather than performance tests or trading rules, so it explains the indicator’s construction and inputs but does not establish predictive value. Traders would need to consult the full formula and independently test any signals before using the line in a strategy.
Key ideas
- TAMA smooths a Time-Averaged Price series with a selected moving-average method.
- The indicator exposes a calculation period, applied price, smoothing period, and smoothing method.
- Examples show versions based on close, high, low, median, and weighted prices.
- The document does not provide enough detail to reproduce the underlying TAP calculation or assess trading performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.