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MetaStock
Indicator - End
Point Moving Average
rev. 01/06/97
The End Point
Moving Average was introduced in the October 95
issue of Technical Analysis of Stocks &
Commodities in the article "The End
Point Moving Average", by Patrick E.
Lafferty. The exact formula for the End Point
Moving average is as follows:
| (
14 * Sum( Cum( 1 ) * C,14 ) - Sum( Cum(
1 ),14) * Sum( C,14) ) / (14 * Sum( Pwr(
Cum( 1 ),2),14 ) - Pwr( Sum( Cum( 1 ),14
),2 ) ) * Cum( 1 ) + (Mov(C,14,S) - Mov(
Cum( 1 ),14,S) * (14 * Sum( Cum( 1 ) *
C,14) - Sum( Cum( 1 ),14 ) * Sum( C,14)
) / (14 * Sum( Pwr( Cum( 1 ),2 ),14) -
Pwr( Sum( Cum( 1 ),14 ),2 ) ) ) |
The above formula
plots the last value of a linear regression line
of the previous 14 periods. The Time Series
Forecast takes this value and the slope of the
regression line to forecast the next day and then
plots this forecasted price as today's value.
***Please note the above formula is using 14
regression periods. If you desire to use different
time periods you must change all instances of the
number 14 to the desired number of time periods.
For interpretation
refer to Mr. Lafferty's article.
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