Theory : Found the formula on another forum that calls this type of calculation "rma". Frankly I do not know what does the "rma" come from, but decided to experiment a bit. Now the original formula is : rma = sma(price,period*3) + sma (price,period*2) - sma(price,period) The results are logical except for one thing : that formula tends to add too much lag. So, with just a little change - when the formula is changed to this : rma =