TUGAS

PENGANTAR GEOFISIKA EKSPLORASI

Filtering : Moving Average

Oleh
Adam Cakra Bhuwana
071.018.001

PROGRAM STUDI TEKNIK PERMINYAKAN

FAKULTAS TEKNOLOGI KEBUMIAN DAN ENERGI
UNIVERSITAS TRISAKTI
JAKARTA
2020

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 Moving Average Filter (MA filter) is the simplest digital filter because it is easy to
understand and use, this filter is commonly used to reduce random noise but it is not good to
be used to separate frequencies within a certain range of bands. As the name implies, the MA
filter is done by averaging the input n-point data to produce an output data, as stated in the
following equation:

y[i] = {x[i+0] + x[i+1] + ....... + x[i+(M-1)]}/M

For example, if M = 5 then y [2] = (x [2] + x [3] + x [4] + x [5] + x [6]) / 5 Figure 1. is the
frequency response of MA filters with different M-points. Appear on the 3-point MA
spectrum has 2 peaks, 5-point has 3 peaks and 9-point has 5 peaks, and so on, with the
equation (M + 1) / 2 peaks, while the number of valleys is (M-1) / 2.

Figure 2. is the result of MA filtering applied to the box signal added with white noise
(random noise), with different MA points.

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 Moving Average filter (MA) works by flattening a certain number of input signals to
produce each point of the output signal.
MA is a type of filter that is simple and useful for filtering out the random noise found in the
original signal. Let x (t) show the input while y (t) show the output while M is the length of
the MA. Then we make two versions of the MA operation.
Note that this MA is a convolution between the input signal and a box-shaped pulse filter
kernel with an amplitude of one. While the 1 / M scalar multiplier is excluded because it is
only a scalar. Usually symmetrical averaging is used more often than others. When using this
type, keep in mind that the value of M must be odd.
It has been previously stated that the MA is good for filtering out the random noise that is
present in the input signal. Indeed there are many other types of filters that can be used for
the same purpose, but when viewed from simplicity, the choice falls on the Supreme Court.
Other types of filters carry complexity so the amount of computation is linear which means
more and more. All depends on a filter designer whether it is enough to use MA or need a
more qualified type of filter. Of course the consideration is not only related to the amount of
computing.
The MA filter is said to be suitable for random noise because when a signal is charged or
contains random noise then each point in the signal becomes noise when compared to
neighboring points. Therefore we need to use a filter that can process points not only per-
point, but together with its neighbors. So that all points will be treated equally by the filter.
Thus we get reliable results.
The greater the length of the MA filter looks the better at removing noise. But that does not
mean that the M value must be like that, depending on the filter designer whether it is
sufficient to meet the desired requirements in the output or not.
Based on the picture above it appears that random noise on the original signal was
successfully filtered while maintaining the sharpness of the rectangular pulse signal. MA
filters are also used as smoothing filters in the time zone, but when used in the frequency
region as a lowpass filter the results are not good.
Simple Moving Average (SMA) calculates the average of the last n prices, where n
represents the number of periods you want to average.
Exponential Moving Average (EMA) is a weighted average of the last n prices, where each
weight will decrease exponentially with each previous price / period. In other words, this
formula provides the latest price with more weight than the previous price.
Weighted Moving Average (WMA) gives you a weighted average calculation of the last n
prices, where each weight will decrease with each previous price. This calculation method is
almost similar to EMA, although in fact you will calculate WMA differently.

There are two types of Moving Average techniques - crossovers used in the Moving Average
method to look for signals of possible trend reversals.
1. When the price moves to cut or below the Moving Average.
2. Moving Average with a short period of cut or below the Moving Average with a longer
duration.

Two things to keep in mind in the Moving Average method:

1. Adjust your risk appetite to market conditions. If your analysis makes you confident
about trends, you should be more inclined to open positions partially based on the
Moving Average crossover or which tends to indicate the start of the trend. But if you

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 are still in doubt, you may need to wait until the price enters the DBB buy or sell
zone, or wait for further confirmation regarding the movemen.
2. . 2. Moving Average with what period should prices be passed to be able to give you
signals related to new trends? Although we use a SMA with a period of 50 in the
example, that period will depend on which period you feel gives the best results: that
is, the MA that gives the signal early enough to capture detects most of the
movement, but not so early that you get more signals fake than what you really want
to receive.

Moving Average is a technical indicator that smooths price movements by filtering

random price fluctuations. As an indicator, Moving Average is trend-following (lagging)
and lagging (delayed) because it is made based on prices that have occurred. Many forex
traders use Moving Average as a technical analysis tool because it is among the simplest
and easiest indicators to use.