Modified Moving Average (MMA)

Category: trend

A trend-following moving average that combines a Simple Moving Average (SMA) with a linear regression-based slope component to reduce lag while maintaining smoothness. It is mathematically equivalent to a Least Squares Moving Average (LSMA).

Formula

MMA_t = SMA_{t,N} + \frac{6 \cdot \sum_{i=0}^{N-1} \left( \frac{N-1}{2} - i \right) \cdot P_{t-i}}{N(N+1)}

Inputs

• period (default: 10)
• source (default: close)

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