Indicator Butterworth Moving Average – a moving average with smoothing using Butterworth filter.
It has two configurable parameters:
- Period – calculation period
- Applied price – calculation price
Calculations:
ButtMA = p1 * Price + p2 * PrevButtMA - p3 * PrePrevButtMA
where:
Price = SMA(Applied price, 1)
p1 = 2 / (1+Period) p2 = 2 * (1-Kf) p3 = (1-Kf) * (1-Kf) Kf = Sqrt(p1)