Recursive Moving Trend Average Analysis and Trading Signals
This Trading Indicator is calculated using a mathematical polynomial fit, the formula is referred as a Recursive Moving Polynomial Fit.
This formula used to calculate this technical indicator only requires a small set of previous information to calculate and predict the next direction of price movement. The example explained and illustrated below shows two Recursive Averages combined to form a crossover trading system method.
Stock Analysis and How to Generate Signals
The best trading analysis method is the cross over trading strategy method where you can combine two recursive averages, such as the 14 & 21. When the two cross overs each other upwards then that's a bullish signal while a downwards cross over is a bearish signal.
Buy Sell Trading Signal
The Recursive Average looks similar to the traditional Moving Average, the only difference is that is much smoother due to the technique of calculation that it uses & much less prone to fake outs.
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