Triangular Moving Averages

A Triangular Moving Average is simply a double-smoothed simple moving average. A Triangular Moving Average is an average of data calculated over a period of time where the middle portion of the data has more weight. The Triangular Moving Average can be used with any price: high, low, open, close, or it could be applied to other indicators. Triangular Moving Average smoothes a data series, which is very important during a volatile market.

The Triangular Moving Average is a form of Weighted Moving Average where the weights are assigned in a triangular pattern.

Calculation

To calculate a nine-period (similar for all odd periods) triangular moving average:

  1. Divide 9 by 2 to get 4.5.
  2. Round 4.5 up to 5.
  3. Triangular moving average (odd periods) = (mov(mov(c,5,s)5,s))

A 12-period (similar for all even periods) is calculated as follows:

  1. Divide 12 by 2 to get 6.
  2. Add 1 to 6 to get 7.
  3. Triangular moving average (even periods) = (mov(mov(c,6,s),7,s))

The rule is to take the length divided by 2 as one average, and that number plus 1 as the second.

Other Example Calculations

For TimeSeries = {a,b,c,d,e,f...} where 'a' is the older price:

1st value for TRIMA 4-Period is: ((1*a)+(2*b)+(2*c)+(1*d)) / 6 2nd value for TRIMA 4-Period is: ((1*b)+(2*c)+(2*d)+(1*e)) / 6

1st value for TRIMA 5-Period is: ((1*a)+(2*b)+(3*c)+(2*d)+(1*e)) / 9 2nd value for TRIMA 5-Period is: ((1*b)+(2*c)+(3*d)+(2*e)+(1*f)) / 9

Sample Chart

The strategies described in this article are for information purposes only, and their use does not guarantee a profit. None of the information provided should be considered a recommendation or solicitation to invest in, or liquidate, a particular security or type of security. Investors should fully research any security before making an investment decision. Securities are subject to market fluctuation and may lose value.