Moving Average of a Moving Average

ZackeryE21

New member
Is there a good use for having a moving average of another moving average? Whether it be a simple thing like a 5-Day SMA of an 10-Day SMA or something more complex like a 5-Day SMA of a 5 (Weekly Average), 20 (Monthly Average), and 60 (Quarterly Average) Day SMA. It does provide a very smooth line, but as I seem to have difficulty understanding the mathematical reasoning of indicators would anyone who has better understanding like to chime in on if this would be useful?

If so, then in what market conditions would this be useful? I'm assuming it would only be good for long-term trades? It would probably help identify the underlying trend in a choppy market as well I would think.

Thanks for any input!
 
Here you go.

5-SMA of 10-SMA.

Code:
input price = close;
input length = 10;
input displace = 0;

def AvgExp = SimpleMovingAvg(price[-displace], length);

plot second_avg = SimpleMovingAvg(AvgExp, 5);

Adjust to your liking.
 
Is there a good use for having a moving average of another moving average? Whether it be a simple thing like a 5-Day SMA of an 10-Day SMA or something more complex like a 5-Day SMA of a 5 (Weekly Average), 20 (Monthly Average), and 60 (Quarterly Average) Day SMA. It does provide a very smooth line, but as I seem to have difficulty understanding the mathematical reasoning of indicators would anyone who has better understanding like to chime in on if this would be useful?

If so, then in what market conditions would this be useful? I'm assuming it would only be good for long-term trades? It would probably help identify the underlying trend in a choppy market as well I would think.

Thanks for any input!

i have used a short average , like 3, to smooth out formula values that had many little reversals. then i think i was able to check if the line was rising or falling.
the shorter the time period, the noiser the data tends to get.
i think applying a long average to a long average, dilutes and displaces the original data too much.

everyone interprets data differently. you will have to experiment with changing input parameters , to find signals that make sense to you.

there is an average called tema, that uses 3 averages.
 

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