The formula for a simple moving average for 10 bars is simply the total of the last 10 closing prices divided by 10. Would anyone know how you could calculate the slope of that moving average? I hope I don't have to relearn all the calculus I did 25 years ago. It was hard enough already way back then. I suppose I could try to look up one of my old math teachers....that is if they're still alive.
How can you calculate the slope of a moving average?
- Thread starter Sam Mcgee
- Start date
That's true, but what mr_minty means is that some people like to think of slope in degrees. A 45 degree slope could be a rise of one point per minute, but it could just as well be one point per hour, depending on how you scale your chart. And of course it is even more complicated if you don't have time (but rather ticks or something else) on the horizontal axis.
You might also want to consider using a linear regression of the moving average values over a selected # of periods - it might give you a better slope (i.e., trend) indicator than a simple (Vn - V(n-m))/m
Try comparing a moving liinear regression line slope to the simple (rise/time) moving line and see which one gives you the kind of information you're looking for.
Slope/trend is also only one factor - slope is like velocity (direction and speed), but also consider looking at acceleration (the rate of change of the slope).
Try comparing a moving liinear regression line slope to the simple (rise/time) moving line and see which one gives you the kind of information you're looking for.
Slope/trend is also only one factor - slope is like velocity (direction and speed), but also consider looking at acceleration (the rate of change of the slope).