Recursive Moving Trend Average Analysis & Trading Signals
This Indicator is calculated using a mathematical polynomial fit, the formula is referred to as Recursive Moving Polynomial Fit.
This formula used to calculate this trading indicator requires only a small set of the previous information to calculate & predict the next direction of the price movement. The example depicted and demonstrated below highlights two Recursive Averages combined to form a cross-over system method.
Analysis and Generating Signals
The best technical analysis method is the cross over strategy where you as a trader can combine two recursive averages, such as the 14 and 21. When the two cross over each other upwards then that's a bullish trading signal while a downward cross over is a bearish signal.
Buy Sell Trading Signal
Recursive Average looks very similar to the traditional MA 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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