Holt's double exponential smoothing (mt4 version) - indicator for MetaTrader 4




Holt's double exponential smoothing (mt4 version) - indicator for MetaTrader 4


The name of the indicator might be a bit misleading. Holts double exponential smoothing is mostly used for forecasting, not as an average. The forecasting method usually used with it is a sort of linear forecasting

- Double Exponential Smoothing  

Like the regression forecast, the double exponential smoothing forecast is based on the assumption of a model consisting of a constant plus a linear trend.


For the purposes of a forecast where the parameters of the model may change, it is more convenient to express the model as a function of , where is the positive displacement from a reference time T.


The estimate a and b at time T are based in the observation at time T and the estimates for the previous period, T -1.


Here we have both the constant and trend coefficients estimated by exponential smoothing. The forecasting parameters, for the constant term and for the trend term can be set independently. Both parameters must be between 0 and 1.

The forecast for the expected value for future periods is the constant plus a linear term that depends on the number of periods into the future.


To make it usable in both manners though (as an average or as an "average" with forecasting, setting the number of forecasted bars to <= 0, turns the forecasting part off.


As usual with the forecasting parts, it is strongly advised not to use it in signaling mode. The forecasting part is a subject of change and should be used only as an estimation of trend component of the double smoothing, not as signal. Alerts in this indicator are not alerting on the change of the forecast part, but on the change of the "past" part - which is not going to change with time past


Download Holt&#39;s double exponential smoothing (mt4 version) - indicator for MetaTrader 4




Related News




Latest News
U.S. women's veterans praise new era of Andonovski
08.03.2020 06:07
By Amy Tennery (Reuters) - Little more than four months on the job, U.S. women's soccer head coach Vlatko Andonovski is earning high praise from team veterans, as the squad looks to build off the momentum of its fourth World Cup win and shake off the demons of an early exit at Rio 2016. Andonovski, who took over in late October from longtime
Read more
Boca pip River to Argentine title with late Tevez screamer
08.03.2020 05:07
BUENOS AIRES (Reuters) - A dramatic late goal from Carlos Tevez gave Boca Juniors the Argentine league title on Saturday, as the Buenos Aires club overcame Gimnasia 1-0 to pip their arch rivals River Plate on an breathtaking last day of the season. River led the Superliga from Boca by a point going into their final round of games and could have
Read more
Boca pip River to Argentine title with late Tevez screamer
08.03.2020 05:04
BUENOS AIRES (Reuters) - A dramatic late goal from Carlos Tevez gave Boca Juniors the Argentine league title on Saturday, as the Buenos Aires club overcame Gimnasia 1-0 to pip their arch rivals River Plate on an breathtaking last day of the season. River led the Superliga from Boca by a point going into their final round of games and could have
Read more
Japan's 7-Eleven worker infected with coronavirus, another case likely caused meningitis
08.03.2020 04:06
TOKYO (Reuters) - A worker at Japan's 7-Eleven convenience store chain in Yamanashi prefecture, west of Tokyo, has contracted the new coronavirus, the company said on Sunday. 7-Eleven, a unit of Japanese retail group Seven & i Holdings said it temporarily closed the store for cleaning and disinfection after the case was confirmed on Saturday
Read more
U.S., Japan women's soccer teams keep focus on games as coronavirus fears swirl
08.03.2020 04:03
By Amy Tennery Harrison, NEW JERSEY (Reuters) - The U.S. and Japan women's national soccer teams said on Saturday they were laser-focused on preparing for the upcoming Olympics, even as a global coronavirus outbreak threatens the postponement or cancellation of the Tokyo Games. The two teams are expected to compete in the second of three
Read more