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## Re: exponential moving average from MOVAVG not correct?

**From**: |
Ben Abbott |

**Subject**: |
Re: exponential moving average from MOVAVG not correct? |

**Date**: |
Tue, 23 Feb 2010 19:35:26 -0500 |

On Feb 23, 2010, at 2:33 PM, Tim Rueth wrote:
>* Does anyone else have experience using the MOVAVG function with exponential *
>* weighting ('e')? If I don't specify the 'e' weighting, then I correctly get *
>* a simple moving average. But when I specify 'e' I get numbers that don't *
>* seem correct. I'm curious if the exponential weighting used here is somehow *
>* different from what is commonly assumed. For example, to calculate stock *
>* price trends, one typically computes MACD (moving average convergence *
>* divergence) by doing:*
>* *
>* MACD = (12-day exponential moving average) minus (26-day exponential moving *
>* average)*
>* *
>* So in Octave, I did the following:*
>* *
>* [Short_ma, Long_ma] = movavg(data(:,Price),12,26,'e');*
>* MACD = Short_ma - Long_ma;*
>* For a typical stock, the MACD value is usually in the single-digits. But *
>* both my Short_ma and Long_ma track Price very closely, and hence MACD stays *
>* in the range of +/-10^-4, which clearly is incorrect. Help please?*
The movavg() function is part of the financial package and not part of octave's
core. Please email the list associated with Octave-Forge.
http://sourceforge.net/mailarchive/forum.php?forum_name=octave-dev
Ben