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Averages and Smoothing

 
 
Reply 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
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