RMA

Syntax Format

rma(series, period)

Overview

RMA (Rolling moving average) belongs to the MA family, and is similar to the Smoothed Simple Moving Average (SSMA), smoothing the price movement to better spot significant trends and reduce the noise along the way. The difference between those Moving Averages is that RMA due to the calculation can be considered as more consistent and responsive.

Parameters

Parameter	Type	Purpose
source	series	Input series, taken into calculation
period	integer	Moving Average period

Returns: series.

Example

instrument { name = "Rolling Moving Average (RMA)", overlay = true }

period = input (14, "Period", input.integer, 1, 100) 
src = input (close, "Source")  

rma = 0  

if not rma[1] then
    rma = src  
else
    rma = (rma[1] * (period - 1) + src) / period  
end

plot(rma, "RMA", color.blue, 2)  

Formula

The formula for calculating RMA is:

The previous value of the RMA is added to the current price value and divided by the chosen period. The calculation is moderately similar to the one of EMA, but gives a smoother result.