Alt Moving Average

Alt Moving Average

Moving averages visualize the average price of a financial instrument over a specified period of time. However, there are different types of moving averages. They typically differ in the way that different data points are weighted or given significance. Classical moving averages include the simple moving average, the weighted moving average and the exponential moving average. Then there are alt moving averages which differ from (and in a way challenge) the classical ones.

They aim to further reduce the lag by making them more responsive and to improve the smoothing by eliminating noise. Sophisticated calculation formulas are used to accomplish these goals and sometimes additional data is used instead of just price. Alt moving averages include methods such as the Arnaud Legoux Moving Average, the Hull Moving Average and the volume-weighted moving average.