Geometric Moving Average - MetaTrader 5 Script | Trading Script Download - MT4/MT5 Resources

Quoted from Wikipedia:

In mathematics, the geometric mean is a mean or mean that indicates the central tendency of a set of finite real values ​​by using their product as a product (as opposed to the arithmetic mean, which uses their sum).

The geometric mean is typically used for a set of numbers whose values ​​need to be multiplied or are exponential in nature, such as a set of growth data: the value of a population over time or the interest rate on a financial investment. It also works for benchmarks, and is particularly useful as a method of calculating speedup: since the average of 0.5x (half as fast) and 2x (twice as fast) will be 1 (i.e. no speedup overall).

The geometric mean is better suited than the arithmetic mean to describe proportional growth, whether exponential (constant proportional growth) or varying growth; in business, the geometric mean of growth rates is known as the compound annual growth rate (CAGR). The geometric mean of growth over a period yields the equivalent constant growth rate and thus the same final amount.

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📎 geometric_moving_average.mq5 (5.63 KB)

Source: MQL5 #49485