Recursive Moving Trend Average Analysis and Trade Signals

This Trading Indicator is calculated using a mathematical polynomial fit, the formula is referred to as a Recursive Moving Polynomial Fit.

This formula used to calculate this technical indicator requires only a small set of the previous information to calculate and predict the next direction of the market price movement. The illustration explained & shown below shows two Recursive Averages combined to form a crossover trading system method.

Stock Analysis and How to Generate Signals

The best trading analysis method is the cross over trading strategy method where you as a stock indices trader can combine two recursive averages, such as the 14 & 21. When the two cross overs each other upwards then that's a bullish signal while a downwards cross over is a bearish signal.

Buy Sell Trade Signal

The Recursive Average looks very similar to the traditional Moving Average, the only difference is that is much smoother due to the technique of calculation that it uses & much less prone to fake outs.

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