Recursive Moving Trend Average Analysis & Trading Signals

This Technical Indicator is calculated using a math polynomial fit, the formula is referred as the Recursive Moving Polynomial Fit.

This formula used to calculate this indicator only requires a small set of previous data to calculate and predict the next direction of price movement. The example shown and described below portrays two Recursive Averages combined to form a crossover system method.

Trading Analysis & Generating Signals

The best analysis technique is the cross-over technique where you can combine two recursive averages, such as the 14 and 21. When the two cross-overs each other upward then that is a bullish signal while a downward cross-over is a bearish signal.

Buy Sell Signal

The Recursive Average looks similar to the traditional moving average, the only difference is that's much smoother due to the technique of calculation that it uses & much less prone to whipsaws.