Rolling Moving Average (RMA)

Created at 16 Mar 2021, 08:47
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raphaelkwek

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Joined 14.03.2021

Rolling Moving Average (RMA)
16 Mar 2021, 08:47

I think the RMA is good for ATR calculation.

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@raphaelkwek
Replies

clctrader
15 Jun 2021, 13:36

If I'm not mistaken, RMA is the same thing as Wilder Smoothed Moving Average, which is already available.

@clctrader

robert.john.edgar
07 Apr 2023, 10:29

RE:

clctrader said:

If I'm not mistaken, RMA is the same thing as Wilder Smoothed Moving Average, which is already available.

No it isn't, that's why, for example, in TradingView you can select either WMA or RMA as a MA type.

 

The main difference between WMA and RMA is in the way they are calculated. WMA assigns weights to each price data point based on the number of periods chosen for the moving average. The most recent price data is given more weight, while older prices are given less weight. This means that the WMA responds more quickly to price changes than the RMA.

On the other hand, the RMA assigns equal weight to each price data point over the specified time period, but adjusts the weight assigned to each data point based on the volatility of the price movement during that time period. This means that the RMA is less sensitive to short-term price fluctuations and is more useful for identifying long-term trends.

 

@robert.john.edgar
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