AIS Weighted Moving Average MT5
The AIS Weighted Moving Average indicator calculates weighted moving average, allowing to determine the beginning of market trend.
Weights are calculated taking into account the specific characteristics of each bar. This allows filtering random market movements.
The main signal, confirming the beginning of a trend, is change in the direction of indicator line movement and the intersection of the indicator lines with the indicator price.
- WH (blue line) - the weighted average High price.
- WL (red line) - the weighted average Low price.
- WS (green line) - the weighted average of all price points.
- LH - the number of bars used for calculations.
For fast selection of LH we first of all need to check values that are multiple of higher timeframes.
For example, you rub the indicator on M15.
Then we should test the following LH values
- M30/M15 = 2
- H1/M15 = 4
- H4/M15 = 16
- D1/M15 = 96
- W1/M15 = 480
Also the values that are in the middle between them might be interesting.