predictive_moving_average

Description:
Originated by John F. Ehlers, could be found within (Rocket Science for Traders, pg. 212). Aim to provide a leading indicator (I assumed for the shorter time period), which smoothed the price with no lag. The indicator derives from 2 lines crossing i.e. a weighted moving average, of higher length as a predictor and shorter length as a trigger.

Predictive Moving Average:
predict = 2*wma1 - wma2
trigger = (4*predict+3*predict+2*predict+predict)/10

Feature:

• Predictive moving average
  
• Deviation band
  

Notes

• Consider the support/resistance (dynamic) when entering the position
  
• Some short direction change might be identified from deviation shrink
  
• Green indicates to enter/long, while red indicates to close/short position
  

Release Notes:

Predictive Moving Average:
predict = 2*wma1 - wma2
trigger = (4*predict+3*predict+2*predict+predict)/10

Release Notes:

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Release Notes:

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Release Notes:

changed to overlay, with a slight adjustment in the color condition

Release Notes:

update on additional options of band/envelope and bar-color

example:

Release Notes:

update on close alert