Theory:
In the January 2000 edition of TASC, Joe Sharp introduced the 'More Responsive Moving Averages' concept. This article presents a modified moving average that significantly reduces the lag commonly seen in traditional moving averages. By utilizing the formula from this article, you’ll find that the moving average line becomes much more responsive to shifts in price action.
Usage:
This indicator can be applied just like any standard moving average.
Note:
It's essential to understand that while the calculations for the 'Sharp modified moving average' differ from those of linear regression, the resulting values are identical. Essentially, this is just another method to arrive at the linear regression value. Sharing this information aims to clear up any confusion regarding this 'new type' of moving average.
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