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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 159.42-1.2%Jan 16 9:30 AM EST

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To: JohnG who wrote (43554)10/6/1999 1:19:00 PM
From: Jim Willie CB  Read Replies (2) of 152472
 
JohnG, on exponential moving averages

what you describe is the geometric moving average
essentially it is the n-th root of the product of those n daily closing prices
the logging and exponentiating enables easier calculations
e.g. geometric avg of 2 and 0.5 is 1
of 4 and 0.25 is 1
of 2,4,6,5 is fourth-root of 240, which is about 3.936

exponential moving average is something more queer
I will dig up a formula for you
the exponential portion comes from smoothing
the weights involve a clever scheme of exponential coefficients
imagine a smoothed arithmetic moving average
the object is to remove undue spikeyness

looks like I missed the cupofcoffee by a point -- 206

more later, jim
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