Triangular Moving Averages and Their Center-Weighted Smoothing

Summary

The document explains the triangular moving average as a smoothed average whose weights rise toward the center of the observation window and then fall symmetrically. It illustrates how the weight pattern expands with the period: odd periods have a single largest central weight, while even periods have two equal central weights. This distinguishes its construction from a simple equal-weight average and helps explain the smoother output.

It notes that implementations differ and claims that an accurate, optimized version can avoid the execution cost of repeatedly looping over longer periods. It also distinguishes this trailing indicator from a centered triangular moving average, saying this version does not recalculate past values. A color change may be used as a signal, but the document provides no formula details, sample chart, trading rules, or performance test, so the signal's usefulness and the implementation claim are not independently demonstrated.

Key ideas

• Triangular moving averages assign the greatest weights to observations near the center of the window.\nThe weight pattern is symmetric and differs between odd and even periods.\nThe document claims an optimized implementation reduces the computational burden for longer periods.\nIt distinguishes the described indicator from a centered version that repaints past values.\nColor changes are suggested as signals, without supporting performance evidence.

Tags

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