Correlated ATR MA | Adulari

How do I use it?

• Never use this indicator as standalone trading signal, it should be used as confluence.
  
• When the price is above the moving average this shows the bullish trend is strong.
  
• When the price is below the moving average this shows the bearish trend is strong.
  
• When the moving average is purple, the trend is bullish, when it is gray, the trend is bearish.
  

Features:

• Purple line for bullish trend and gray line for bearish trend.
  
• Custom formula combining an ATR and Hull MA to clearly indicate trend strength and direction.
  
• Unique approach to moving averages by taking the average of 3 types of MA's combined with custom ATR's.
  

How does it work?
1 — ATR value is calculated, then the correlation between the source and ATR is calculated.
2 — Signal value is calculated from the difference between the previous source and ATR values.
3 — Final value is being calculated using the following formula:

cor * target + (1 - cor) * nz(atr[1], target)

4 — Moving average is calculated by getting the average of 3 values: a normal HMA, HMA plus final value, and HMA minus final value.

Versionsinformation:

• Removed unnecessary old code.
  
• Fixed some minor issues with the calculations.
  

Versionsinformation:

• Fixed correlation calculations.
  
• Added weight option.
  

Versionsinformation:

• Changed weight default value.
  

Versionsinformation:

• Added a time adaptive option which will make sure the MA is useable on lower timeframes.
  

Versionsinformation:

• Fixed time adaptive calculations for higher timeframes.