A Moving Average calculated by the least squares method.
The indicator has two input parameters:
- Period – calculation period;
- Applied price – price used for calculations.
Calculation:
LSMA[i]=Sum/L2
where
Sum[i] = (Period - N)*Price[i] + (Period - N - 1)*Price[i-1] + … + (1 - N)*Price[i-Period+1], N = (Period + 1)/3, L2 = Period*(Period + 1)/6