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 Smoothed Moving Average (SMMA) or Rolling Moving Average (RMA).

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PostSubject: Smoothed Moving Average (SMMA) or Rolling Moving Average (RMA).   Sun Aug 14, 2011 2:22 am

A Smoothed Moving Average (SMMA) or Rolling Moving Average (RMA) is an additional type of Moving Average. In a SMA, the price data have an equal weight in the computation of the average, also the oldest price data are removed from the MA as a new price is added to the computation.

The Smoothed Average assigns a weight to the price data as the average is calculated, though less weight is assigned to each later price in the series.




The SMMA (or RMA) uses a longerperiod to determine the average, assigning a weight to the price data as the average is calculated and this way appears to be the smoothest then SMA and EMA, when plotted in the chart.

Thus, the oldest price data points are never removed in this case, but they have only a minimal impact on the Moving Average, which is similar to how an Exponential MA places more weight on the more recent data.


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Smoothed Moving Average (SMMA) or Rolling Moving Average (RMA).
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