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To: Eurobum1 who wrote (563)2/3/2002 2:37:29 PM
From: j42231  Read Replies (1) | Respond to of 208019
 
Eurobum,

It is just a simple moving average.....it's sequence moved forward in time.

For ex: in a 3 day SMA you add the past three numbers of data and divide by 3. (ex: 3+7+5=15/3=5) If the next day's number is 6--the '3' is dropped off the '6' added and the new SMA becomes 6. The '3' was the offset number being dropped off--the next day's offset number to be dropped off is '7' and the following day is '5' etc.

Those are the numbers projected forward--against the close.

There may be several other ways to do this--but it's all relative ; )

J.