Recursive Moving Trend Average Analysis & Trading Signals
This Trading Indicator is calculated using a math polynomial fit, the formula is referred as the Recursive Moving Polynomial Fit.
This formula used to calculate this trading indicator only requires a small set of previous information to calculate & predict the next direction of price movement. The example depicted and demonstrated below highlights two Recursive Averages combined to form a crossover system method.
Trading Analysis and Generating Signals
The best technical analysis method is the cross-over strategy 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 trading signal while a downwards cross over is a bearish signal.
Buy Sell Trading Signal
Recursive Average looks 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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