Mov Avg - Exponential

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Mov Avg - Exponential

Variable List Abbreviation: ExpMvAvg

 

Variable Mode(s): Standard, Stock, Futures1, and Futures2

[ Note: uses selected close variable in Stock, Futures1, and Futures2 modes ]

 

Parameter(s): ExpMvAvg factor

 

Description:

Smoothes values with later values having an exponentially decreasing affect on the overall average.  The exponential factor can be approximated as 2/(n+1) where n is the number of time periods that would be used for the equivalent length simple moving average.

 

Calculation:

ExpMovAvg = value*factor + OldAverage*(1.0-factor)

Notes:

Initially average set to first value

Exponential factor must be greater than zero and less than one