Indicator HWMA (Holt-Winter Moving Average) is a three-parameter moving average by the Holt-Winter method; the three parameters should be selected to obtain a forecast.
The indicator has four input parameters:
- nA - parameter of the equation that describes a smoothed series (from 0 to 1);
- nB - parameter of the equation to assess the trend (from 0 to 1);
- nC - parameter of the equation to assess seasonality (from 0 to 1);
- Applied price - price used for calculations.
HWMA[i] = F[i] + V[i] + 0.5 * A[i]
F[i] = (1-nA) * (F[i-1] + V[i-1] + 0.5 * A[i-1]) + nA * Price[i] V[i] = (1-nB) * (V[i-1] + A[i-1]) + nB * (F[i] - F[i-1]) A[i] = (1-nC) * A[i-1] + nC * (V[i] - V[i-1])