If you're looking for an accurate and efficient way to track a moving target, the Kalman filter is a good bet.

This recursive algorithm was invented in the 1960s and has been used by the asset management industry for various purposes. It has been widely used in navigation because of its predictive capabilities.

But in financial analysis, the Kalman filter is also an optimal choice in many cases and will do usually better than a moving average. With its precision and reliability, the Kalman filter is sure to help you achieve your goals.

In finance, Kalman Filter is an efficient tool for both short-term analysis and long haul one alike. The algorithm smoothes out price fluctuations but at the same time it doesn't ignore their existence, which makes it perfect to use on charts with limited amounts of data - which is always the case in markets.

This post explains more on a Pine script port for the algorithm.