The user selects their choice of moving average, and the bands automatically adjust. The user may select a MA that reacts faster to or slower/smoother.
Added additional options to color the bands or basis based on the current trend and alternate candle colors for band touches. Options:
REACT SLOW/SMOOTH TO VOLATILITY
REACT SMOOTH TO VOLATILITY
- exponential moving average ( )
- weighted moving average (Weighted MA )
- exponential (Hull with better smoothing)
HIGHLY ADJUSTABLE TO VOLATILITY
default for more smoothing, set offset=1 to turn off smoothing
REACT HARSH TO VOLATILITY
REACT VERY FAST TO VOLATILITY
VALUE ADDED: This script is unique in that no other indicator offers a user selection for moving average, and some of the options do not exist yet as indicators.
- Bollinger Bands: A Band® is a tool defined by a set of plotted two standard deviations (positively and negatively) away from a ( ) of a security's price, but which can be adjusted to user preferences.
- Exponential Bands: The most important characteristics of the Exponential indicator are: When the market is flat, the bands will stay much closer to prices. When the is high, the bands move away from prices faster.
- Hull Bands: calculated by , rather than or . The ( ), developed by Alan Hull, is an extremely fast and . In fact, the almost eliminates lag altogether and manages to improve smoothing at the same time.
- Exponential Hull Bands: calculated by Exponential , rather than or . The Exponential is similar to the standard Hull MA, but with superior smoothing. The standard is derived from the ( ). As other moving average built from weighted moving averages it has a tendency to exaggerate price movement.
- Weighted Moving Average Bands: A ( ) is similar to the ( ), except the adds significance to more recent data points.
- Arnaud Legoux Moving Average Bands: removes small price fluctuations and enhances the trend by applying a moving average twice, once from left to right, and once from right to left. At the end of this process the phase shift (price lag) commonly associated with moving averages is significantly reduced. Zero-phase digital filtering reduces noise in the signal. Conventional filtering reduces noise in the signal, but adds a delay.
- Least Squares Bands: The indicator is based on sum of least squares method to find a straight line that best fits data for the selected period. The end point of the line is plotted and the process is repeated on each succeeding period.
- Added Triple EMA
- Added Running Moving Average or SMoothed Moving Average (RMA/SMMA)
- Added Volume-weighted Moving Average
[Triple EMA (TEMA)
The triple exponential moving average (TEMA) was designed to smooth price fluctuations, thereby making it easier to identify trends without the lag associated with traditional moving averages (MA). It does this by taking multiple exponential moving averages (EMA) of the original EMA and subtracting out some of the lag.
Running (SMoothed) Moving Average
A Modified Moving Average (MMA) (otherwise known as the Running Moving Average (RMA), or SMoothed Moving Average (SMMA)) is an indicator that shows the average value of a security's price over a period of time. It works very similar to the Exponential Moving Average, they are equivalent but for different periods (e.g., the MMA value for a 14-day period will be the same as EMA-value for a 27-days period).
Volume-Weighted Moving Average
The Volume-weighted Moving Average (VWMA) emphasizes volume by weighing prices based on the amount of trading activity in a given period of time. Users can set the length, the source and an offset. Prices with heavy trading activity get more weight than prices with light trading activity.
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 a publication is governed by House Rules. You can favorite it to use it on a chart.