OPEN-SOURCE SCRIPT
RedK_Momentum-based Step MA (MoStep_MA)
Summary
==========
This script plots a "momentum based" stepping Moving Average of various types - the idea is to visualize price moves in levels (or steps) to reduce "chart noise" - avoid getting caught in sideway moves - and enable better trade entry and exit decision.
How does the MoStep_MA Work:
=============================
- we first choose a "base MA" of our preferred type: WMA, EMA, SMA and Hull MA are available - this base MA will be visible in light gray on the chart and can be completely hidden (although it is useful - see chart below)
- The steps are then created when a "momentum change" - expressed by a "relatively significant price move" - has been detected - either up or down
A "Significant price move" is defined as a price move that is relatively large compared to the "recent" average (absolute) price moves within a certain period
The "strength average" period can be adjusted - in terms of how the average is calculated (WMA, EMA, SMA), the number of bars (length) taken into consideration, as well as to include a "significance factor" of the price move relative to that average
using a significance factor of 1.5 is like saying: i want a new step only when the price move is 1.5 times the average price moves within the last (x) bars
the move has to be in the direction of the underlying MA trend - this is an additional condition i added, when i found that some moves will be significant but in the opposite direction and will cause a new step to be created - adding unnecessary "noise"
Default settings and other tweaks
===============================
By default, we use WMA for both the base MA and for calculating the average price change - other moving average types are available -
the significance factor is set to 1 by default.
feel free to experiment with other values and settings.
here's a chart with some additional notes - the significance factor here is set to 1.5 times the average price move.
- code is commented with further notes
- this indicator should not be used in isolation - as usual, it should be supported by other trend and momentum indicators to get proper confirmation of signals
==========
This script plots a "momentum based" stepping Moving Average of various types - the idea is to visualize price moves in levels (or steps) to reduce "chart noise" - avoid getting caught in sideway moves - and enable better trade entry and exit decision.
How does the MoStep_MA Work:
=============================
- we first choose a "base MA" of our preferred type: WMA, EMA, SMA and Hull MA are available - this base MA will be visible in light gray on the chart and can be completely hidden (although it is useful - see chart below)
- The steps are then created when a "momentum change" - expressed by a "relatively significant price move" - has been detected - either up or down
A "Significant price move" is defined as a price move that is relatively large compared to the "recent" average (absolute) price moves within a certain period
The "strength average" period can be adjusted - in terms of how the average is calculated (WMA, EMA, SMA), the number of bars (length) taken into consideration, as well as to include a "significance factor" of the price move relative to that average
using a significance factor of 1.5 is like saying: i want a new step only when the price move is 1.5 times the average price moves within the last (x) bars
the move has to be in the direction of the underlying MA trend - this is an additional condition i added, when i found that some moves will be significant but in the opposite direction and will cause a new step to be created - adding unnecessary "noise"
Default settings and other tweaks
===============================
By default, we use WMA for both the base MA and for calculating the average price change - other moving average types are available -
the significance factor is set to 1 by default.
feel free to experiment with other values and settings.
here's a chart with some additional notes - the significance factor here is set to 1.5 times the average price move.
- code is commented with further notes
- this indicator should not be used in isolation - as usual, it should be supported by other trend and momentum indicators to get proper confirmation of signals
开源脚本
本着TradingView的真正精神，此脚本的创建者将其开源，以便交易者可以查看和验证其功能。向作者致敬！虽然您可以免费使用它，但请记住，重新发布代码必须遵守我们的网站规则。
免责声明
这些信息和出版物并不意味着也不构成TradingView提供或认可的金融、投资、交易或其它类型的建议或背书。请在使用条款阅读更多信息。
开源脚本
本着TradingView的真正精神，此脚本的创建者将其开源，以便交易者可以查看和验证其功能。向作者致敬！虽然您可以免费使用它，但请记住，重新发布代码必须遵守我们的网站规则。
免责声明
这些信息和出版物并不意味着也不构成TradingView提供或认可的金融、投资、交易或其它类型的建议或背书。请在使用条款阅读更多信息。