Recursive Moving Trend Average

Written by Miroslav Marinov

Miroslav Marinov

Miroslav Marinov, a financial news editor at TradingPedia, is engaged with observing and reporting on the tendencies in the Foreign Exchange Market, as currently his focus is set on the major currencies of eight developed nations worldwide.

, | Updated: September 15, 2025

This indicator was developed by Dennis Meyers and introduced in his article ‘The Japanese Yen, Recursed’, published in the December 1998 issue of Technical Analysis of Stocks and Commodities magazine. According to Meyers, this method requires only a small amount of historical data for the estimated price and the current price (today) in order to forecast the future price (tomorrow).

Dennis Meyers suggests creating a simple trend oscillator (the ‘tosc’) that represents the difference between the Recursive Moving Trend Average and an Exponential Moving Average (EMA), both calculated over the same period. He proposes examining the price series and searching for changes that exceed the normal noise fluctuations. Such changes signal the start of a potential bull or bear trend.

A potential buy signal is generated when the tosc reading crosses above the ‘dup’ level. A potential sell signal is generated when the tosc reading crosses below the ‘-ddn’ level.

Chart Source: VT Trader