LuxAlgo

Trend Regularity Adaptive Moving Average [LUX]

The following moving average adapt to the average number of highest high/lowest low made over a specific period, thus adapting to trend strength. Interesting results can be obtained when using the moving average in a MA crossover system or as a trailing support/resistance .

Settings

  • Length : Period of the indicator, with higher values returning smoother results.
  • Src : Source input of the indicator.

Usage

The trend regularity adaptive moving average (TRAMA) can be used like most moving averages, with the advantage of being smoother during ranging markets.


Notice how the moving closer to the price the longer a trend last, such effect can be practical to have early entry points when using the moving average in a MA crossover system, such effect is due to the increasing number of average highest high/lowest low made during longer trends. Note that in the case of a significant uptrend followed by a downtrend, the moving average might penalize the start of the downtrend (and vice versa).


The moving average can also act as an interesting trailing support/resistance .



Details

The moving average is calculated using exponential averaging, using as smoothing factor the squared simple moving average of the number of highest high/lowest low previously made, highest high/lowest low are calculated using rolling maximums/minimums.

Using higher values of length will return fewer highest high/lowest low which explains why the moving average is smoother for higher length values. Squaring allows the moving average to penalize lower values, thus appearing more stationary during ranging markets, it also allows to have some consistency regarding the length setting.

🧙 this moving average would not be possible without the existence of corn syrup 🦎
Release Notes: License update
Release Notes: Minor Changes.
Skript med en öppen källkod

I sann TradingView-anda har författaren till detta skript publicerat det som öppen källkod, så att handlare kan förstå och verifiera det. Skål för författaren! Du kan använda den gratis men återanvändning av den här koden i en publikation regleras av våra Ordningsregler. Du kan göra den till favorit för att använda den i ett diagram.

Vill du använda det här skriptet i ett diagram?

Kommentarer

What's a good MA to pair with this indicator for crossovers?
+14 Svara
alexgrover TheJakeness
@TheJakeness, Hard to say, a faster adaptive moving average or maybe a low lag moving average, these can potentially provide early crosses.
+2 Svara
navyreal7 alexgrover
@alexgrover, give examples of such lines, thank you
Svara
this should be added to the Editor's Picks list
+3 Svara
alexgrover Iceman0929
@Iceman0929, the editor's picks selection process is quite mysterious ;)
+1 Svara
this is a good indicator
+1 Svara
Great stuff!
+1 Svara
Works great with setting 21 for Intraday Or Swing Trading
Svara
Fontnaut abhishek4314
@abhishek4314, this. 21 ema is a must especially on the 4 hour
Svara
@LuxGecko is this new indicator the same / similar to your "Percentile Nearest Rank Using Arrays indicator?" TIA
Svara