Author: Matias Romeo
The main weight goes for the average part of the price series. In fact, they are double-smoothed simple moving averages. The simple Moving Averages' length depends on evenness or oddness of the chosen number of periods. Operations for TMA calculation:
The main weight goes for the average part of the price series. In fact, they are double-smoothed simple moving averages. The simple Moving Averages' length depends on evenness or oddness of the chosen number of periods. Operations for TMA calculation:
- 1. To the number of periods of Moving Average 1 is added.
- 2. The received sum is divided to 2.
- 3. If the result was released fraction, it is rounded up to a whole.
- 4. The simple Moving Average of close prices with the number of periods obtained up to point 3 is calculated.
- 5. Again using the value obtained up to point 3 the simple Moving Average calculated by point 4 is calculated.