Description 

Modified Moving Average is an algebraic tool which makes averages more amenable to price shifts. The first point of the modified moving average is calculated precisely as the first point of the simple moving average is calculated. However, all following points are measured by adding the new price and afterwards subtracting from the resulting sum the last average.
Equation
MMA

Source Code (Easy Language)

{*******************************************************************
Description: Modified Moving Average
Provided By: Denny Imanuel, Inc. (c) Copyright 2009
********************************************************************}

Inputs: Price(NumericSeries), Period(NumericSimple);
Variables: PriceSum(0), counter(0);

PriceSum = 0;

for counter = 0 to Period-1
begin
    PriceSum = PriceSum + ((Period-(2*counter+1))/2 * Price[counter]);
end;

MMA = SMA(Price,Period) + (6*PriceSum)/((Period+1)*Period);

Graph

image

Interpretation
As you can see that MMA (magenta) is a very responsive type of moving average as compared to SMA (cyan).

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