OPEN-SOURCE SCRIPT
TEWMA Supertrend - [JTCAPITAL]
TEWMA Supertrend is a modified way to use Triple Exponential Weighted Moving Average inside Supertrend logic for Trend-Following
The indicator works by calculating in the following steps:
1. Calculate the Triple Exponential Moving Average with Weighted Moving Average as input.
2. Calculate the ATR over the Supertrend Length
3. Use the Triple Exponential Weighted Moving Average, and add the multiplier times the ATR for the upper limit, and subtract the multiplier times the ATR for the lower limit.
4. Define Buy and Sell conditions based on the price closing above or below the upper and lower limits.
--Buy and sell conditions--
- The buy and sell conditions are defined by the price going above/below the upper and lower limits, calculated by (TEWMA +/- multi * ATR).
- When this goes on the opposite direction of the current trend, the trend changes. If this goes in the same direction of the current trend, the line follows the price by moving up.
- When price gets closer to the limits the limits do not change. The upper limit only moves when the upper decreases, and the lower limit only moves when the lower increases.
- The ATR gets subtracted from the lows or added onto the highs to eliminate false signals in choppy markets, while enforcing fast entries and exits.
--Features and Parameters--
- Allows the usage of different sources
- Allows the changing of the length of the ATR
- Allows the changing of the length of the TEWMA
- Allows the changing of the multiplier to increase or decrease ATR usage
--Details--
This script is using TEWMA as input for the modified Supertrend. Using a TEWMA and getting a higher multiplier to the ATR is meant to decrease false signals. Which can be a problem when using a normal Supertrend. Using the TEWMA also ensures fast entries and exits from fast market moves after a calm period. Ensuring you don't stay left behind.
Be aware that lowering the multiplier for the ATR will allow for faster entries and exits but also allow for more false signals. It is recommended to change the parameters to fit your liking and to adjust to the timeframe you are working on.
Enjoy!
The indicator works by calculating in the following steps:
1. Calculate the Triple Exponential Moving Average with Weighted Moving Average as input.
2. Calculate the ATR over the Supertrend Length
3. Use the Triple Exponential Weighted Moving Average, and add the multiplier times the ATR for the upper limit, and subtract the multiplier times the ATR for the lower limit.
4. Define Buy and Sell conditions based on the price closing above or below the upper and lower limits.
--Buy and sell conditions--
- The buy and sell conditions are defined by the price going above/below the upper and lower limits, calculated by (TEWMA +/- multi * ATR).
- When this goes on the opposite direction of the current trend, the trend changes. If this goes in the same direction of the current trend, the line follows the price by moving up.
- When price gets closer to the limits the limits do not change. The upper limit only moves when the upper decreases, and the lower limit only moves when the lower increases.
- The ATR gets subtracted from the lows or added onto the highs to eliminate false signals in choppy markets, while enforcing fast entries and exits.
--Features and Parameters--
- Allows the usage of different sources
- Allows the changing of the length of the ATR
- Allows the changing of the length of the TEWMA
- Allows the changing of the multiplier to increase or decrease ATR usage
--Details--
This script is using TEWMA as input for the modified Supertrend. Using a TEWMA and getting a higher multiplier to the ATR is meant to decrease false signals. Which can be a problem when using a normal Supertrend. Using the TEWMA also ensures fast entries and exits from fast market moves after a calm period. Ensuring you don't stay left behind.
Be aware that lowering the multiplier for the ATR will allow for faster entries and exits but also allow for more false signals. It is recommended to change the parameters to fit your liking and to adjust to the timeframe you are working on.
Enjoy!
Open-source Skript
Ganz im Sinne von TradingView hat dieser Autor sein/ihr Script als Open-Source veröffentlicht. Auf diese Weise können nun auch andere Trader das Script rezensieren und die Funktionalität überprüfen. Vielen Dank an den Autor! Sie können das Script kostenlos verwenden, aber eine Wiederveröffentlichung des Codes unterliegt unseren Hausregeln.
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.
Open-source Skript
Ganz im Sinne von TradingView hat dieser Autor sein/ihr Script als Open-Source veröffentlicht. Auf diese Weise können nun auch andere Trader das Script rezensieren und die Funktionalität überprüfen. Vielen Dank an den Autor! Sie können das Script kostenlos verwenden, aber eine Wiederveröffentlichung des Codes unterliegt unseren Hausregeln.
Haftungsausschluss
Die Informationen und Veröffentlichungen sind nicht als Finanz-, Anlage-, Handels- oder andere Arten von Ratschlägen oder Empfehlungen gedacht, die von TradingView bereitgestellt oder gebilligt werden, und stellen diese nicht dar. Lesen Sie mehr in den Nutzungsbedingungen.