OPEN-SOURCE SCRIPT
Nadaraya-Watson Envelope Alternative [CHE] Super Envelope
The problem of the wonderfuls Nadaraya-Watson indicators is that they repainting, so I use a John Ehlers’ 2-pole Butterworth filter “Super Smoother”. With this indicator you are able to make adjustments to the length and using the multiplier out and thus to make the analysis as good as possible.
Settings:
smoothing length: Determines the length of the Super Envelope.
Adjustable multiplier: Multiplier for the bands
Show middle band: On and off center line
Hide Disclaimer: Uncheck to hide the disclaimer
Usage
This tool outlines extremes made by the prices within the selected window size. This is achieved by estimating the underlying trend in the price using Ehlers Super smoothing, calculating the mean absolute deviations from it, and adding/subtracting it from the estimated underlying trend.
We can expect the price to reverse when crossing one of the envelope extremities. Crosses between the price and the envelopes extremities are indicated with triangles on the chart.
I have integrated alerts for this indicator from the crosses between the price and the envelope extremities. However, i do not recommend this tool to be used alone or solely for real time applications.
best regards
Chervolino
Settings:
smoothing length: Determines the length of the Super Envelope.
Adjustable multiplier: Multiplier for the bands
Show middle band: On and off center line
Hide Disclaimer: Uncheck to hide the disclaimer
Usage
This tool outlines extremes made by the prices within the selected window size. This is achieved by estimating the underlying trend in the price using Ehlers Super smoothing, calculating the mean absolute deviations from it, and adding/subtracting it from the estimated underlying trend.
We can expect the price to reverse when crossing one of the envelope extremities. Crosses between the price and the envelopes extremities are indicated with triangles on the chart.
I have integrated alerts for this indicator from the crosses between the price and the envelope extremities. However, i do not recommend this tool to be used alone or solely for real time applications.
best regards
Chervolino
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
Disclaimer
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