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Fri 9 Sep, 2005 07:50 am
I am trying to wrap my head around the idea of averages and smoothing.
Specifically a reference to a smoothed average.
I understand calculating an avearage -
Average = (d1 + d2 + d3 + ... + dn)/n
So if n = 5, then Average = (d1 + d2 + d3 +d4 +d5)/5
I could write a function Average to calculate it
result = Average(data, 5)
Is smoothing is just an Average of the above result
Example a 3 period smoothing of the Average
var = (result of two periods ago
+ result of one periods ago
+ result of current period) /3
I hope I have the idea correct. Please let me know.
Snoopy