Engineering Alpha

Engineering Alpha

The Fractal Adaptive Moving Average

Checking Out a Different Type of Moving Averages

Sofien Kaabar, CFA's avatar
Sofien Kaabar, CFA
Mar 19, 2025
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Moving averages are one of the most basic and widely used tools in time series analysis and technical analysis. They smooth out short-term fluctuations in data to highlight longer-term trends or cycles. This article discusses a special kind of moving averages called the fractal adaptive moving average.

What are Moving Averages?

The idea is simple: take th…

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