Time Series Moving Average

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Description

The time series moving average is calculated using linear regression techniques. Rather than plotting a straight linear regression line, a time series moving average plots the last point of the line. It does this using the specified number of periods for each day. The individual points are then connected together with a line to form a time series moving average.

This moving average is sometimes referred to as a "moving linear regression" study or a "regression oscillator."

For information on calculating linear regression using the least squares method (the basis behind time series moving averages), refer to any basic statistics book.