OpenEuphoria

Re: simple moving average

• Posted by Ricardo Forno <ricardoforno at tutopia.com> Feb 24, 2007
• 538 views

mark wrote:
> 
> 
> i am wondering if anybody is willing to program a simple moving average graph
> i am willing to pay for the service
> basicly i have a real time data from the broker
> data supplied gives many values
> i am only in taking the closing price at a given time frame e.g. 1 min, 5 min,
> 15 min. etc
> and plot a simple moving average
> the moving average will be of say the last 4 closing prices, or 20 etc
> the program should prompt for:
> 
> time frame: in min or day
> no of closing prices to be used for calculating the moving average
> ut will be nice if the graph cna have color for the different closing price
> thanks

I'm not offering to do the job, but: did you think about using exponential
smoothing instead of moving average? The formula is very simple, and
it does not need to save more than a single data item.
If the last data is called x, and the new one z, then you get the forecast
for the next one as:

next = x * (1 - coef) + z * coef

where coef is a coefficient between 0 and 1. A large coefficient places
more weight on the new data.
This formula usually gives smoother results than moving average.
Regards.