[blackcat] L1 Joe Sharp More Responsive Moving Average (MMA)

2021년 7월 31일

Level: 1

Background

Joe Sharp propsed a "More Responsive Moving Averages (MMA)" in Jan, 2000. He describes a modified moving average that greatly diminishes the lag that is typically associated with moving averages. With the formula described in the article, the moving average line is more responsive to changes in the price action.



Function

An MMA indicator to plot the modified moving average is created in this script for application on a chart with fastline and slowline to produce golden crosses and dead crosses. In the pine script below, the calculation for the modified moving average is created in a function called ModifiedMA. This function basically takes care of all the necessary calculations for the modified moving average line. By putting the entire calculation into a function, the modified moving average calculation can be easily referenced by any analysis technique.


Key Signal

ModifiedMA (Price, FastLength) --> ModifiedMA Fast Line.
ModifiedMA (Price, SlowLength) --> ModifiedMA Slow Line.

Remarks

This is a Level 1 free and open source indicator.

Feedbacks are appreciated.

4월 18일

릴리즈 노트

OVERVIEW

The L1 Joe Sharp More Responsive Moving Average (MMA) indicator is designed to provide traders with more responsive moving averages compared to traditional methods 📈🔍. It calculates two modified moving averages: a fast and a slow version, which can be customized based on user preferences. The script plots these averages on the chart and highlights areas where they intersect, indicating potential buy or sell opportunities 💸✅. Additionally, it includes labels for visual cues and alert conditions for automated trading strategies ⚠️🛎️.

FEATURES
Customizable price sources and lengths for both fast and slow MMAs.
Plots fast and slow Modified Moving Averages with customizable colors and line widths.
Highlights intersections between fast and slow MMAs using fill colors.
Provides visual buy and sell signals via labels on the chart.
Includes alert conditions for automated trading notifications.
HOW TO USE
Input Parameters:

Set the desired price_source from available options like close, open, high, low, etc.
Adjust the fast_length and slow_length inputs to define the periods for the respective moving averages.
Interpreting Signals:

When the fast MMA crosses above the slow MMA, a buy signal (BUY) is generated.
Conversely, when the fast MMA crosses below the slow MMA, a sell signal (SELL) is triggered.
Visual cues are provided through colored labels on the chart for easy identification.
Customizing Alerts:

Enable alerts in TradingView settings to receive notifications when buy/sell conditions are met.
Modify alert messages as needed for personalized trading strategies.
LIMITATIONS
The responsiveness of the moving averages may vary depending on market conditions and selected parameters.
Users should backtest and optimize the script with their specific trading instruments and timeframes before relying solely on its signals.
NOTES
The script uses a custom function to compute the Modified Moving Average, enhancing sensitivity to recent price changes.
Fill colors between the fast and slow MMAs help visualize trends and potential reversals more clearly.