Third Generation MA
The 3rd Generation Moving Average is an Advanced version of the standard Moving Average (MA) indicator.
It implements a rather simple lag-reducing procedure based on the longer MA period.
The method was first described by M. Duerschner (2011) in his article Gleitende Durchschnitte 3.0 (in German)
The presented version uses λ = 2, which provides the best possible lag-reducing. Higher λ increases similarity with the classic Moving Average.
Parameter :
MA_Period (default = 50) — a period of the 3rd Generation Moving Average (MA)
MA_Sampling_Period (default = 220) — a sampling period of the 3rd Generation Moving Average.
Should be at least 4 times greater than MA_Period.
MA_Method (default = MODE_EMA) — method of the Moving Average.
You can use the 3rd Generation Moving Average (MA) indicator the same as the Standard Moving Average — to detect the Current trend direction.