OPEN-SOURCE SCRIPT
Signal Moving Average [LuxAlgo]
Aktualisiert
The following script returns a moving average designed to be used as a signal line in a moving average crossover system. The moving average will diverge from the price during ranging markets and reach the value of a regular moving average during trending markets.
Settings
Usage
Moving average crossover strategies often rely on a "signal" line, a slower moving average used to determine a general trend. This signal line is paired with a faster moving average to filter out potential whipsaw trades that would have been given from crosses between the regular price and the signal line.
The proposed indicator will avoid crossing the price by diverging from it during more ranging periods, thus effectively reducing the number of crosses produced between the price and the signal line.
The color of the area between the price and the signal line is determined by the position of the price relative to the signal line, with a green color indicator a price superior to the signal line.
The color of the signal line, however, is taking into account whether market is trending or ranging, only changing once the market is trending.
The chart above shows the cumulated number of crosses between the price and the signal line (green) and a regular simple moving average of the same period (red) on AMD 15m, a lowered number of crosses can effectively reduce the impact of frictional costs introduced by whipsaw trades.
Settings
- Length: Moving average period
- Src: Source input of the indicator
Usage
Moving average crossover strategies often rely on a "signal" line, a slower moving average used to determine a general trend. This signal line is paired with a faster moving average to filter out potential whipsaw trades that would have been given from crosses between the regular price and the signal line.
The proposed indicator will avoid crossing the price by diverging from it during more ranging periods, thus effectively reducing the number of crosses produced between the price and the signal line.
The color of the area between the price and the signal line is determined by the position of the price relative to the signal line, with a green color indicator a price superior to the signal line.
The color of the signal line, however, is taking into account whether market is trending or ranging, only changing once the market is trending.
The chart above shows the cumulated number of crosses between the price and the signal line (green) and a regular simple moving average of the same period (red) on AMD 15m, a lowered number of crosses can effectively reduce the impact of frictional costs introduced by whipsaw trades.
Versionshinweise
Updated chartVersionshinweise
Minor changesVersionshinweise
Minor changes.Open-source Skript
Ganz im Sinne von TradingView hat dieser Autor sein/ihr Script als Open-Source veröffentlicht. Auf diese Weise können nun das Script auch andere Trader verstehen und prüfen. Vielen Dank an den Autor! Sie können das Script kostenlos verwenden. Die Nutzung dieses Codes in einer Veröffentlichung wird in unseren Hausregeln reguliert. Sie können es als Favoriten auswählen, um es in einem Chart zu verwenden.
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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.
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