It is used for smoothing price series and is applied directly on a price chart of a financial security. Besides, it can be used for smoothing values of other indicators.
The advantage of this indicator is that it eliminates false signals at the saw-toothed price movement and allows saving a position at a strong trend.
Double Exponential Moving Average Indicator
This indicator is based on the Exponential Moving Average (EMA). Let's view the error of price deviation from EMA value:
Let's add the value of the exponential average error to the value of the exponential moving average of a price and we will receive DEMA:
The advantage of FRAMA is the possibility to follow strong trend movements and to sufficiently slow down at the moments of price consolidation.TradePad_Sample
This is a simple example of user interface of information system with possibility to trade by pressing a button.
TEMA can be used instead of traditional moving averages. It can be used for smoothing price data, as well as for smoothing other indicators.Variable Index Dynamic Average (VIDYA)
This oscillator measures the ratio between the sum of positive increments and sum of negative increments for a certain period.