[blackcat] L1 Tim Tillson IE/2

21. Juni 2021

Level: 1

Background

Before this script, I cannot find a IE/2 moving average script in tradingview. Although it is not so complex, it is meaningful to be the 1st Tim Tilson IE/2 script in tradingview community. IE/2 moving average was disclosed in "Smoothin Techniques For More Accurate Signals", Tim Tilson, S&C Magazine, Traders Tips, 01/1998.


Function

IE/2 is one of pre-studies created while T3 famous average was developing. It is calculated as (ILRS(n)+EPMA(n))/2. ILRS, is an integral of linear regression slope. In this moving average, the slope of a linear regression line is simply integrated as it is fitted in a moving window of length n across the data. The derivative of ILRS is the linear regression slope.EPMA is an end point moving average - it is the endpoint of the linear regression line of length n as it is fitted across the data. EPMA hugs the data more closely than a simple or exponential moving average of the same length.

The most popular method of interpreting a moving average is to compare the relationship between a moving average of the security's price with the security's price itself (or between several moving averages).


Inputs

Price --> price data to use
Period --> number of bars to use in calculation

Key Signal

Price --> Price Input.
IE/2 --> IE/2 Ouput.

Remarks

This is a Level 1 free and open source indicator.

Feedbacks are appreciated.

18. Apr.

Versionshinweise

OVERVIEW
The L1 Tim Tillson IE/2 indicator is a comprehensive trading tool that combines Linear Regression analysis with Integrated Exponential calculations to provide traders with powerful market insights. This indicator generates buy/sell signals based on price action relative to its calculated IE/2 line, while also incorporating advanced divergence detection capabilities. The script is designed to work across various timeframes and asset classes, making it versatile for different trading strategies.

FEATURES

• Core Indicators

Linear Regression Slope Analysis
Integrated Exponential Moving Average (IE/2)
Price Source Customization
Adjustable Period Length
• Trading Signals

Long Entry Signals (BUY!)
Short Entry Signals (SELL!)
Real-time Signal Alerts
• Divergence Detection

Regular Bullish Divergences
Hidden Bullish Divergences
Regular Bearish Divergences
Hidden Bearish Divergences
• Visualization Tools

Price and IE/2 Line Overlay
Dynamic Color Filling
Signal Labels
Divergence Markers
HOW TO USE

Setup Parameters

Select desired Price Source (default: Close)
Adjust Period Length (default: 15)
Configure Divergence Detection Settings
Interpret Signals

Monitor crossover/crossunder events
Watch for divergence patterns
Use signal labels for confirmation
Alert Configuration

Set up alerts for BUY! and SELL! signals
Customize alert conditions as needed
LIMITATIONS

• Indicator may generate false signals during high volatility periods
• Best results achieved when combined with additional technical analysis tools
• Performance may vary across different market conditions and timeframes