Experimental Dynamic Moving Average

 

Hi!

Today i was really bored, so i begun making some indicators to kill time.

I dont really know if this indicator could be helpful to anyone, but just in case here it is lol.

Just to make things more fun and interesting i've put many parameters.

Until now there are two main modes.

Mode 0 is a moving average with its period being equal to the Average True Range.

Mode 1 is a moving average with its period being equal to the Standard Deviation.

Then you have the MA_Modes, where you can choose the moving average that better suits you.

Being:

0= SMA

1= EMA

2= SMMA

3= LWMA

4= JMA (for those like me that like the jurik ma) Note: I use the JMA_StarLight, so if you want to use this mode, remember first to install the attached indicator.

JMA_Phase is the phase parameter of the JMA, so its only used if you selected mode 4.

DynPeriod is the period of the indicator you are using to setup the MA period, so if you are using Main_Mode 0, with the DynPeriod parameter you would be setting the ATR period; if you where using the Main_Mode 1, with the DynPeriod parameter you would be setting the Standard Deviation Period.

Now here it is a important parameter, Constant.

The dinamic period is multiplied by this constant, think of it as a way to normalize the period to what you consider better fit (pretty much as you do on bollinger bands with the deviations parameter, where you select the number of deviations). By default it is set at 1, but when you use it on bigger timeframes you might consider making its value smaller, and if you use it on smaller timeframes, you might consider using bigger values (bigger values bigger periods, smaller values smaller periods).

Lookback is also a interesting thing to play with, it just sets how many slots back from the current one you want to take the ATR or StdDev (i say this is interesting to play with because volatility is considered to be cyclic and able to be forecasted easily, so by changing this you could make your MA go faster on big moves and slower on slow moves , the trick is to set the lookback in phase with the cycle).

Now this is one of those things that was born of a mistake lol. The StaircaseMode!

It just sets the decimal precision of the indicator, but its kinda interesting the way it looks on the charts (its like a big filter lol). Use Precision to set the above.

Well i expect some comments on this one lol

If anyone wants anything added, i'll be happy to add it.

JCC

 

Hi Juanchoc, i like your indicators and it look better than normal moving average. I will play with the setting and let you know soon. Brilliant ideas + good programmer = excellent indicator. I just only know this simple formulae. Haha

 

Thanks mrLoba!

Im modifying the staircase mode to make it more configurable.

I think the staircase mode could be a interesting feature to detect trending and ocillating market conditions.

The other add-on im going to add, is a angle based dynamic mode, so as the angle moves away from 0, the period decreases, but still im thinking the best way to do that.

 

I think this indicator is giving more accurate and setting flexibility than normal moving average. Let see my setting on chart. Looking forward for improved version.

Files:
gu1.gif  16 kb
 

hi

mrLoba:
I think this indicator is giving more accurate and setting flexibility than normal moving average. Let see my setting on chart. Looking forward for improved version.

sorry for asking,

What kind of MA did u use ?

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Forex Indicators Collection

 

Hi Prasx, I am using Dynamic Moving Average. You can find the indicators attached above. Explore youself what best for your trading style..

 
mrLoba:
I think this indicator is giving more accurate and setting flexibility than normal moving average. Let see my setting on chart. Looking forward for improved version.

there seems to be alot of whipsaws on that chart

 

I have a question.

If you are using Std.dev or ATR as the length of the MA, then surely when the market is moving fast, the Std.Dev or ATR would naturally be greater, sure then this would increase the lag on the MA ?

Obviously this would be the opposite for a slow/sideways market. Therefore, I would expect increased whip with this indicator, and also a slower response to exit a trade when in a fast market ?

Have I got this wrong ?

Would it not be sensible perhaps to invert it in some way ? The you would slow down your entry, avoid whip, but manage an open position effectively.

 

Thanks

Hi Juanchoc :

Thanks. I enjoy your productive boredom.

Regards

Onepip

 

Hi!

rogerha: Exactly that is what it does. As ATR or StdDev go higher, the period of the MA goes higher, thats pretty much why i've put a constant as one of the parameters, so that as you change the timeframes, you can scale the relationship between price movement and the MA period.

What im trying to do now, is to make a new indicator to boost this one, a sort of a "mirrored atr", but im just trying to figure out what way would be better to do it.

Thanks to everyone for your support on my boredum productivity (onepip lol).

JCC

 
juanchoc:
Hi!

rogerha: Exactly that is what it does. As ATR or StdDev go higher, the period of the MA goes higher, thats pretty much why i've put a constant as one of the parameters, so that as you change the timeframes, you can scale the relationship between price movement and the MA period.

What im trying to do now, is to make a new indicator to boost this one, a sort of a "mirrored atr", but im just trying to figure out what way would be better to do it.

Thanks to everyone for your support on my boredum productivity (onepip lol).

JCC

I have considered this before, but never actually got clear in my head how to implement it, so you have gone a long way already comapred to me

The mirrored method you may find to be more effective. But like you I can't actually get an idea on how to do it.

You need a sort of referece point for ATR, say an 'average ATR' that accounts for trending and non-trending markets, below that centre point you swing the MA length one-way, and above, swing it another, thats all I can think of really.

Reason: