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Are Linear Regression Indicator and Modified Moving Average same Indicators?
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Am I doing something wrong? Have I made a mistake somewhere?
I plotted a 5-period Linear Regression Indicator of Closing Price { LinearReg(C,5) } and then plotted a 5-period Modified Moving Average of Close and they plot exactly alike, showing the same values on the bar. 5-period Modified Moving Average of Close formula is as under:
{ n:=5;
tn:=Mov(C,n,S);
s1:=((n-1)/2)*C + ((n-3)/2)*Ref(C,-1) + ((n-5)/2)*Ref(C,-2)
+ ((n-7)/2)*Ref(C,-3) + ((n-9)/2)*Ref(C,-4);
y:=tn+(6*s1)/((n+1)*n);
y }
The same is the case with 10-period or any other period. Are they the same indicators?
Regards
aksh
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Location: Perth, Western Australia
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aksh wrote:
n:=5;
tn:=Mov(C,n,S);
s1:=((n-1)/2)*C + ((n-3)/2)*Ref(C,-1) + ((n-5)/2)*Ref(C,-2)
+ ((n-7)/2)*Ref(C,-3) + ((n-9)/2)*Ref(C,-4);
y:=tn+(6*s1)/((n+1)*n);
When you grind out all the numbers, for n=5 this expression simplifies to: Code:(3*C+2*Ref(C,-1)+Ref(C,-2)-Ref(C,-4))/5;
Whether this is the same as LinearReg(C,5), I don't know? If it is raining tomorrow, I might see if I can solve this part of the puzzle? It is interesting to see how there are often different ways to show the same numbers. wabbit [:D]
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Are Linear Regression Indicator and Modified Moving Average same Indicators?
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