We were playing with moving averages here.
We were looking for something that smooothed out the wrinkles in the stock chart and ...
>And didn't have too much lag, eh?
Yes, that's right.
I like the Exponential Moving Average (EMA) 'cause it gives more weight to recent stock prices (Fig. 1).
>But to avoid lots of lag you gotta take the average over just a few days.
Yes ... then you get wrinkles, like the 5day EMA (as in Fig. 1)
 Figure 1: EMA 
However, suppose we look carefully at the 5day EMA and pretend it's the chart of some stock.
Then we calculate the average daily return for this new 5day EMA stockgraph.
Then, each day, we increase the price for this fictitious stock by that 5day average gain.
Then we plot that graph.
Then we'd get yet another graph which we'll call the 5day gEMA ... as in Fig. 2.
>Uh ... it has more lag.
And not so wrinkled, I think.
>Why g moving average?
It's a great moving average, don't you think?
>NO!
 Figure 2: gEMA 
Having done that once ...
>Don't tell me you're gonna do it again!
Why not?
We pretend that the 5day gEMA graph is a stock chart and we calculate the average daily return over the past n days ...
>And, each day, we increase the price for a fictitious stock by that nday average gain?
Sounds good to me!
For n = 10, we can call this new graph the 10/5day ggEMA.
>Huh?
It uses the 10day average return of the 5day gEMA ...
>Which uses the 5day average return of the regular, gardenvariety EMA.
You got it!
 Figure 3: ggEMA 
>I assume you have a gggEMA and a gggggEMA and ...
That's left as an exercise ... for you.
Anyway, you can play with this spreadsheet: (Click on the picture to download.)
