Sam4x 9:45 secret

What Is the Sam4x 9:45 Secret?


The Sam4x 9:45 secret indicator uses three smoothed moving averages, set at five, eight, and 13 periods, which are all Fibonacci numbers. The initial smoothed average is calculated with a simple moving average (SMA), adding additional smoothed averages that slow down indicator turns.
SUM1 = SUM (CLOSE, N)
SMMA1 = SUM1/N

Subsequent values are:

PREVSUM = SMMA(i-1) *N

SMMA(i) = (PREVSUM-SMMA(i-1)+CLOSE(i))/N

Where:

SUM1 - the sum of closing prices for N periods;

PREVSUM - smoothed sum of the previous bar;

SMMA1 - smoothed moving average of the first bar;
SMMA(i) - smoothed moving average of the current bar (except for the first one);

CLOSE(i) - current closing price;

N - the smoothing period.

How the indicator is calculated is important for understanding the inner workings of the indicator. Luckily, the calculation is not required in practice. The Alligator indicator can be added to your charts from the indicator list in your charting or trading platform.

The three moving averages comprise the Jaw, Teeth, and Lips of the Sam4 9:45 secret opening, and closing in reaction to evolving trends and trading ranges:
Jaw (blue line): Starts with the 13-bar SMMA and is smoothed by eight bars on subsequent values.

Teeth (red line): Starts with the eight-bar SMMA and is smoothed by five bars on subsequent values.

Lips (green line): Starts with the five-bar SMMA and smoothed by three bars on subsequent values.