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Integrated Moving Average

Integrated Moving Average (IMA)

It's an essential tool for a trader. It's the first analyzer based on the emission method [1, 2]. Simple, reliable and easy to use even for a novice investor. In addition, the emission method allows forecasting a trajectory of the probable price movement! Your trading on financial markets will become more intelligent and risks will decrease.

Instructions

  • The forecast curve of the moving average movement LMAF (Line Moving Average Forecast) show the future price behavior. 1);
  • You should sell if the LMAF line is directed downwards and the current price deviates from the integrated moving average line (IMA) upwards you (fig. 3);
  • You should buy if the LMAF line is directed upwards and the current price deviates from the integrated moving average line downwards (fig. 4);
  • It is reasonable to sell only If most of the integrated emissions points (IEP) are grouped below the IMA moving average. In an opposite situation, you should sell;
  • If the distance between the price and the integrated moving average stays at the same level, a strong correction is expected (fig. 5).

Input Parameters

  • Drawing integral characteristics in the past [in bars] - display integral characteristics in the past (to the left of the current bar), 500 on default;
  • Drawing integral characteristics in the future [in bars] - display integral characteristics in the future (to the right of the current bar), 500 on default;
  • Averaging period for calculation of the integral curves - period of averaging for calculation of the integral curves (LMAF), 21 on default;
  • Visibility emission - display dots of initial emission: display (true), hide (false);
  • Visibility LMAF - display отображать линию LMAF или нет: да (true), нет (false).

Matrix of Input Values for Calculation of the Integral Characteristics

At the first start of the analyzer, "ima.csv" file is created in Files folder. This is a matrix of input values of the periods of averaging of moving averages which are used for calculation of the integral characteristics of the emission. On default, it uses 300 iMA indicators with the periods of averaging from 1 to 300, step is equal to 1. This file can be modified to make your own set of moving averages. Further, this exact matrix will be used for the calculation.

Graphical Elements of the Analyzer

  • The integrated moving average line (IMA) is formed by points and is not redrawn. The first point from the right coincides with the end node of the forecast curve LMAF (Line Moving Average Forecast).
  • The integrated emission points (Integrated Emission Point) to the right of the current bar, which are used for calculation of the forecast line, move vertically seeking for an "equilibrium point". The integrated emission points to the left of the current bar are fixed and not redrawn.
  • The number of nodes of the forecast line LMAF can be changes via the Average parameter. The range is from 1 to a value equal to Future/3. The bigger is the Average value, the smoother is the forecast line. 

Recommendations

  • It is better to use the analyzer on smaller timeframes;
  • Observe the analyzer results and develop your own trading strategy.
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Version 2.0 - 2014.02.03
Added possibility to use custom matrix of input values of the periods of averaging of moving averages, which are used for drawing the emission and calculating the integral characteristics.