DSMA (Deviation-Scaled Moving Average)

Modified on 2018/05/28 11:39 by Eugene — Categorized as: TASCIndicators

Syntax

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

Parameter Description

drs	DataSeries
period	Moving average period

Description

Featured in John F. Ehlers' article from July 2018 issue of Technical Analysis of Stocks & Commodities magazine, the DSMA (deviation-scaled moving average) is an adaptive moving average that rapidly adapts to volatility in price movement. It accomplishes this by modifying the alpha term of an EMA by the amplitude of an oscillator scaled in standard deviations from the mean. The DSMA's responsiveness can be changed by using different values for the input parameter period.

Interpretation

Use the same rules that we apply to EMA when interpreting DSMA.

Example

Please refer to TASC July 2018 issue, "The Deviation-Scaled Moving Average (Ehlers)".