Mov Avg - Exponential


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



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.



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


Initially average set to first value

Exponential factor must be greater than zero and less than one