Syntax

MMA(A1; period)

Arguments

A1 must be an array.
The 'period' argument must be a constant greater than or equal to 1.

Result

The result is an array.

Description

A moving average is an indicator that shows the average value of a security's price over a period of time. The Modified Moving Average is actually the same as the Exponential Moving Average, but with one difference: the exponential percentage is calculated with the following formula: 

Exp_Percent =  1  / (Time_Periods + 1) 

For comparison the exponential percent for the EMA is:  

Exp_Percent =  2  / (Time_Periods + 1) 

The formula for calculating the MMA is the same as the formula of the EMA: 

MMA[n] = A1[n] * Exp_Percent + MMA[n-1] * (1 - Exp_Percent)  

The two functions are equivalent, but for different values of the period parameter. For example a 14-day MMA is the same as 27 -day EMA. The MMA function is provided for convenience.

Related Examples

Windows Forms: Data Manipulation\Functions\Moving Averages