SMMA (Smoothed Moving Average Series)

Modified on 2010/02/05 10:24 by Eugene — Categorized as: Community Indicators

Syntax

public SMMA(DataSeries ds, int period, string description)
public static SMMA Series(DataSeries ds, int period)

Parameter Description

ds	Data series
period	Indicator lookback period

Description

A Smoothed Moving Average is sort of a blend between a Simple Moving Average and an Exponential Moving Average, only with a longer period applied (approximately, half the EMA period: e.g. a 20-period SMMA is almost equal to a 40-period EMA).

Calculation

The first value of this smoothed moving average is calculated as the simple moving average (SMA) with the same period. The second and succeeding moving averages are calculated according to this formula:

PREVSUM = SMMA(i-1) *N
SMMA(i) = (PREVSUM-SMMA(i-1)+CLOSE(i))/N

Where:

SUM1 — is the total sum of closing prices for N periods;
PREVSUM — is the smoothed sum of the previous bar;
SMMA1 — is the smoothed moving average of the first bar;
SMMA(i) — is the smoothed moving average of the current bar (except for the first one);
CLOSE(i) — is the current closing price;
N — is the smoothing period.

Reference

Example

No example currently available.