Exponential Moving Average - Teradata Vantage

Teradata® VantageCloud Lake

Deployment
VantageCloud
Edition
Lake
Product
Teradata Vantage
Published
January 2023
Language
English (United States)
Last Update
2024-02-17
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Exponential moving average (EMA), or exponentially weighted moving average (EWMA), applies a damping factor, alpha, that exponentially decreases the weights of older values. This technique gives much more weight to recent observations, while retaining older observations.

With MAvgType ('E'), the MovingAverage function uses this procedure:
  1. Compute the arithmetic average of the first n rows.
  2. For each subsequent row, compute the new exponential moving average value with this formula:

    EMAM = alpha * V + (1 - alpha) * EMAM-1