OPEN-SOURCE SCRIPT
Moving Average Converging [LuxAlgo]
Updated
This indicator returns a moving average converging toward the price the more a trend makes new higher-highs or lower-lows depending on the detected trend.
Settings
Usage
The proposed moving average can be used like most slow moving averages.
Having a moving average able to converge closer to the price the longer a trend lasts allows users to obtain more timely crosses. This practice can remind us of the Parabolic SAR or our TRAMA indicator:
![Trend Regularity Adaptive Moving Average [LuxAlgo]](https://s3.tradingview.com/p/p8wGCPi6_mid.png)
Notice on the chart above how the moving average converges at an increasing rate with the occurrence of new high-highs/lower-lows.
Settings
- Length: Controls the initial moving average smoothing factor (2 / (Length + 1)), as well as the period of rolling maximums/minimums.
- Increment: Smoothing factor increment (2 / (Increment+ 1)) for new higher-high/lower-low, lower values would return a faster converging moving average.
- Fast: Fast moving average smoothing factor.
Usage
The proposed moving average can be used like most slow moving averages.
Having a moving average able to converge closer to the price the longer a trend lasts allows users to obtain more timely crosses. This practice can remind us of the Parabolic SAR or our TRAMA indicator:
Notice on the chart above how the moving average converges at an increasing rate with the occurrence of new high-highs/lower-lows.
Release Notes
Minor fixRelease Notes
Minor changes.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.
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All content provided by LuxAlgo is for informational & educational purposes only. Past performance does not guarantee future results.
Join our 150k+ community: discord.gg/lux
All content provided by LuxAlgo is for informational & educational purposes only. Past performance does not guarantee future results.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.