Investor/RT Tour

Investor/RT Tour ( more on Technical Indicators )
T3 - Adaptive Smoothing Indicator

The Formula . . .	. . .more on Formulas
T3(n) = GD(GD(GD(n))) GD(n,v) = EMA(n)(1+v) - EMA(EMA(n))v GD stands for Generalized DEMA (double-smoothed exponential MA) where n = Period v = Volume Factor similarly... T5(n) = GD(GD(GD(GD(GD(n)))))

The Presentation . . .	. . . more on Charts
Above is a 3-minute Chart of the Intel Corporation (INTC). The T3 is added as a blue line, using the preferences below.

The Preferences . . .	. . . more on Preferences

T3 - Options of choosing T1, T2, T3, T4, T5, or T6. See equation above for details. Price - Price used as input to the T3 smoothing. Period - Period used to smooth the data. Volume Factor - Should range between 0 and 1. When volume factor is 0, GD is just an EMA. When the factor is 1, GD is just a DEMA (double EMA).

The Description . . .
T3 is an adaptive moving average. It tracks the time series more aggressively when making large moves. It is discussed in the Stocks and Commodities article "Smoothing Techniques For More Accurate Signals" V16:1 (33-37).