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NEMAC Net Effective Market Activity Components™ (© 1990 NEMAsystem.com) B/S HIGHLIGHTS Home About NEMAC Cautions Acronyms Equations NEMA Data Indicators using the NEMA components for: S&P 500 BEANS COPPER GOLD BONDS |
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__________________________________________________________________________________________________ End Point Moving Average (EPMA): Equations. Reference: Kraska, Don “End Point Moving Average,” Letters, Technical Analysis Of Stocks & Commodities, February, 1996, pp12-14. Kraska’s formula for the endpoint moving average (EPMA) is epman=Sum[6pi/(n(n+1))(i-(n+1)/3)] for i=1 to n. Per his letter, in classical notation this is equivalent to: EPMAn=[2/n(n+1)]∑i=1,n[(3i) - n - 1]Pi John Bellantoni and Patrick E. Lafferty also listed equations for the EPMA in Technical Analysis of Stocks & Commodities. Reference: Bellantoni, John F. “Endpoint Moving Average,” Letters, Technical Analysis of Stocks & Commodities, April, 2001, pp. 12-14. In general, (basic formula) EPMA=w(0)p(0)+w(1)p(1)+...+w(n)p(n), where p(0)=today's price and p(n)=price n days ago, and the weighting is given by w(i)=(4n-6i+2)/((n+1)(n+2)), where i=0,1,2,...,n The individual equations were used in spreadsheets, until Don Kraska pointed out and gave examples of using the Excel spreadsheet TREND function to accomplish the same thing. The slope of the endpoint is also easily calculated using the LINEST function. Kraska's simple examples are given in Letters, Technical Analysis of Stocks & Commodities, August, 2000, pp. 8-12.
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