FTB-C000460 / Formula component

Equal-Weight Component Average

Equal-Weight Component Average is the arithmetic mean of component values when each component receives identical weight.

Also known asunweighted component mean

Foundation Formula defined 1 linked topicPublished

Definitions

In plain terms

Canonical Connors RSI averages three ready zero-to-100 components by dividing their sum by three.

Technical

The contract freezes component identities, scales, readiness intersection, missing propagation, denominator count, and precision.

Scope

Equal weighting does not make components independent or equally informative.

Formula

Equal-weight average = sum(component_i) / m
LaTeX: Score=\frac{1}{m}\sum_{i=1}^{m}s_i
SymbolMeaningUnit
component_iready component score icomponent unit
mnumber of componentscomponents

Output unit: component unit

Examples

  • A governed lesson calculates or identifies Equal-Weight Component Average only after its inputs, window, state, scale, and edge cases are declared.

Common misconceptions

  • Equal weighting does not make components independent or equally informative.

Concept relationships

Prerequisites

Related

Required by

Where this concept is used

Evidence and governance

  1. Connors Relative Strength Index Implementation QuantConnect Lean · first party technical publication

    Supports: preferred label, short definition, technical definition, formula

    Limits: The moving branch can change; exact parity requires a pinned revision and an explicit tie and ranking-window contract.

Reviewed by
fintech-builder-batch-008
Last reviewed
2026-07-29
Next review
2027-07-29
Record status
published