Recursive Moving Trend Average Analysis and Trade Signals

This indicator uses a math-based polynomial fit called a recursive moving polynomial fit.

The mathematical formula underpinning this technical indicator necessitates only a minimal quantity of preceding data to forecast the subsequent trajectory of the market price. The demonstration explained and depicted below illustrates the combination of two Recursive Averages to construct a trading methodology based on crossover signals.

Stock Analysis and How to Generate Signals

The best way to look at trades is to combine two averages that look back over time, like the 14 and 21. When the two lines cross up, it means buy, but when they cross down, it means sell.

Buy Sell Trade Signal

The Recursive Average resembles a traditional Moving Average but offers smoother results due to its calculation method. This reduces susceptibility to false signals considerably.

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