An almost impossibly smooth moving average that is convenient for any application where a moving average is needed and where noise reduction is more important than responsiveness to very recent data. You get to choose what the S stands for.
Built by taking a weighted difference between two EMA's in such a way that the contribution of the latest value is cancelled out, while staying a proper moving average with all weights greater than zero, and with the first moment picked to be the same for a given length as the sma. Still has a somewhat ema-like behaviour in the sense that old values are gradually forgotten over time.
Catatan Rilis
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Made slight mathematical improvement: since the last valued is canceled out of the moving average it is possible to tune the formula to shift the moving average forward by one candle. This makes it slightly more responsive to recent movements without sacrificing noise reduction.
The old behavior can be regained by simply delaying the new version.
Thanks! This is great. Quick question, how can I set up an "if" statement using the slope of the SEMA line? I'd like to enter long orders only when the slope is positive.
rajatrinadh
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tnq super sir
saolof
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Also, the formula can be generalized to even more noise-cancelling sums of EMA's by using Vandermonde matrices, but this is smooth enough for pretty much any application.
saolof
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Quick clarification. This is not the SMMA (which is just the EMA with a different period and as such rather useless). It is roughly as responsive to gradual trend changes as an SMA or an EMA with the same period, but is much better at smoothing out noise.