The Modified Exponential Moving Average (MEMA) is very similar to the Exponential Moving Average (EMA) and differs only in the manner in which the smoothing factor is calculated. The smoothing factor is the element in the formula that converts the number of bars to be considered into a decimal that represents that length.
In a standard Exponential Moving Average (MAE) the formula is as follows:
MAE = MAE t-1 + SF * (Price – MAE t-1)
SF = 2 / (1 + Length of Average)
The formula for the modified version is essentially the same, but the smoothing factor is calculated as follows:
SF = 1 / Length of Average
The effect of the different smoothing factor basically slows the average, but there will be equivalents.
Note: Closing price is the default, but the system allows you to use other prices, such as open price, high price, low price etc.
Studies can be added by clicking the studies icon in the Chart Toolbar.
To remove a study from your chart, click [Study Name] and then Delete.