Engineering Alpha

Engineering Alpha

The Centipede Moving Average Indicator — Riding the Trend.

Creating the Centipede Moving Average Indicator in Python.

Sofien Kaabar, CFA's avatar
Sofien Kaabar, CFA
Dec 01, 2021
∙ Paid

Moving averages have their benefits but also their limitations, with each type suffering from a specific bias be it lag or hyper responsiveness. There is generally not a solution to improve each type of moving average, but we can create a sort of scanner that send a signal when they are all giving the same bias. We will call this scanner, the Centipede.

Share

User's avatar

Continue reading this post for free, courtesy of Sofien Kaabar, CFA.

Or purchase a paid subscription.
© 2026 Sofien Kaabar · Privacy ∙ Terms ∙ Collection notice
Start your SubstackGet the app
Substack is the home for great culture