Moving averages seek to cut through the noise of wild swings in the stock market to provide a clearer picture of what is driving prices.

For example, suppose you want to construct a two-sided moving average chart with an in-control ARL of 100 and an ARL of 9 for detecting a shift of . Table 21.21 shows that the combination w=3 and ...

A Weighted Moving Average attempts to reduce lag by putting more weight on recent data, rather than older prices, ... The formula Alpha = 2/(days -1) is important to "understand".