Nonlinear Optimal Velocity Adaptive MA
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Khac Thanh Bui
Turning trading logic into algorithmic precision. I develop professional-grade tools for FX and Gold, bridging the gap between practical trading needs and high-end software development.
WHAT I BUILD: - Version: 1.1
NOVA LINE
An adaptive moving average for MetaTrader 5 that automatically adjusts its responsiveness to market conditions, with non-repainting BUY and SELL signals and built-in stop loss and take profit zones.
NOVA LINE replaces the fixed period of a conventional moving average with a nonlinear weighting engine. It evaluates each historical bar by the size of its price move relative to current volatility: bars that represent genuine momentum receive high weight; bars that represent noise receive weight close to zero. The line responds quickly during real trends and holds steady during choppy conditions, without the trader having to choose between a fast and a slow setting.
How It Works
Three mechanisms drive the calculation. The first is a sigmoid excitation gate. Each bar is weighted by a sigmoid function of its ATR-normalised price move. Below the configured threshold the weight collapses toward zero; above it the weight rises toward one. This is the property that separates NOVA LINE from every linear moving average: the transition is sharp and threshold-based, not gradual and proportional.
The second is a kinematic velocity memory. When the current price move agrees in direction with the recent slope of NOVA LINE, the bar receives additional weight and the line tracks price readily. When they disagree, the weight is reduced and the line resists. This creates inherent protection against false breakouts without any separate filter parameter.
The third is a Fibonacci cascade window. The lookback depth and decay half-life are both derived from the golden ratio applied to the base period, so the memory is internally consistent and self-truncating.
All values are calculated on confirmed, closed bars and do not repaint.
Signals and Display
The line colour encodes both direction and conviction. Bright green indicates a rising trend with excitation above the threshold. Bright red-orange indicates the same on the downside. Muted shades indicate weak directional movement below threshold. Cyan indicates a neutral state with no bias.
BUY and SELL arrows appear when the line enters a confirmed directional state. Three signal modes are available: colour change alone, colour change plus excitation score, or all of the above plus price position relative to the line. Each arrow is paired with a stop loss zone and a take profit zone drawn directly on the chart, sized by ATR and the configured risk-reward ratio.
An information panel shows the current signal, excitation score, velocity factor, and the active SL and TP levels. The panel is draggable. Popup, push, and email alerts are supported.
Recommended Use
NOVA LINE suits instruments with clear trending behaviour and reasonable intraday volatility. XAUUSD on M5 to H1 and major forex pairs on M15 to H1 are suitable starting points. During extended low-volatility consolidation the excitation gate will suppress most bars and the line will produce few signals, which is the intended behaviour. Read signals from the most recently closed bar.
Parameters
- Base period — Foundation for window depth and decay rate — Default: 21
- Excitation threshold — Minimum ATR-normalised move for a bar to contribute significantly — Default: 0.50
- Sigmoid steepness — Sharpness of the weight transition around the threshold — Default: 4.0
- Velocity memory scale — Strength of direction-agreement modulation; 0 disables it — Default: 0.42
- Velocity normalisation — Scaling factor for the velocity calculation — Default: 4.0
- Signal mode — Confirmation level before an arrow is drawn: Mode 1 colour only, Mode 2 plus excitation, Mode 3 plus price position — Default: Mode 2
- Minimum excitation score — Score required in Modes 2 and 3 — Default: 0.44
- Minimum slope — Normalised slope threshold for directional state assignment — Default: 0.25
- Arrow style — Triangle, classic arrow, or diamond — Default: Triangle
- Arrow size / Line width — Visual sizing of arrows and the main line — Default: 2
- Show SL/TP zones — Enables the stop loss and take profit rectangles — Default: true
- Stop loss distance — ATR multiplier for stop loss placement — Default: 1.8
- Risk-reward ratio — Take profit as a multiple of the stop loss distance — Default: 2.0
- Zone width — Bars the SL and TP rectangles extend to the right — Default: 5
- Show panel — Enables the information panel — Default: true
- Alerts — Popup, push notification, email — Default: all off
Past performance based on historical signals does not guarantee future results. NOVA LINE is a technical analysis tool. All trading decisions remain the responsibility of the trader.
