ATR Adaptive Moving Average

[The Bataylor]

Is there a way to create a moving average that instead of using fixed values, it integrated the ATR to be less/more reactive based on current volatility? The goal would be to have a moving average that in volatile times, it moves very rapidly with the changes and focuses on the short-term, whereas in steady times, it is less likely to get caught in the dips and valleys of price and focuses more on the big picture.

 

[BuzzKill]

Is there a way to create a moving average that instead of using fixed values, it integrated the ATR to be less/more reactive based on current volatility? The goal would be to have a moving average that in volatile times, it moves very rapidly with the changes and focuses on the short-term, whereas in steady times, it is less likely to get caught in the dips and valleys of price and focuses more on the big picture.

Have you considered using Heikin Ashi bars and/or writing code to plot their Open on a Candlestick chart?

 

[The Bataylor]

Have you considered using Heikin Ashi bars and/or writing code to plot their Open on a Candlestick chart?

I don't think Heikin Ashi will really solve what I am looking for.

 

[MerryDay]

Is there a way to create a moving average that instead of using fixed values, it integrated the ATR to be less/more reactive based on current volatility? The goal would be to have a moving average that in volatile times, it moves very rapidly with the changes and focuses on the short-term, whereas in steady times, it is less likely to get caught in the dips and valleys of price and focuses more on the big picture.

It sounds like you are looking for the ToS AMA: https://tlc.thinkorswim.com/center/reference/Tech-Indicators/studies-library/M-N/MovAvgAdaptive

TOS MovAvgAdaptive
The Adaptive Moving Average (AMA) is a moving average that changes its sensitivity to price moves depending on the calculated volatility.

Investopedia states: https://www.investopedia.com/articles/trading/08/adaptive-moving-averages.asp

the adaptive moving average is an interesting newer idea with considerable intellectual appeal, our preliminary tests fail to show any real practical advantage to this more complex trend smoothing method." This doesn't mean traders should ignore the idea. The AMA could be combined with other indicators to develop a profitable trading system.

 

[The Bataylor]

It sounds like you are looking for the ToS AMA: https://tlc.thinkorswim.com/center/reference/Tech-Indicators/studies-library/M-N/MovAvgAdaptive

Investopedia states: https://www.investopedia.com/articles/trading/08/adaptive-moving-averages.asp

Thanks! Will check it out and see if it is applicable for what I am trying to accomplish.

 

[british43]

@SleepyZ I am trying to create a top moving average indicator. Please if you can take a look. Welcome all recommendation!

input price = close;
input price1 = high;
input displace = 0;
input length = 200;
input length1 = 500;
input length2 = 100;
input length4 = 1000;
input atrmod=2;
def bn = barnumber();
def lastBar = highestall(if isnan(close) then 0 else bn);
def offset = bn - lastbar;

input averageType = AverageType.EXPONENTIAL;


input length3 = 9;
input showBreakoutSignals = no;

input length5 = 252;
input averageType1 = AverageType.WILDERS;

def atr = GetValue(ATR(length), offset);


# User Inputs

def Num_Dev_Dn = atr;
def Num_Dev_up = -atr;

plot top200AvgExp = ExpAverage(price[-displace], length) * 1.06;
plot top200AvgExpupBand = top200AvgExp + Num_Dev_Dn ;
top200AvgExpupBand.Hide();
plot top200AvgExplowBand = top200AvgExp + Num_Dev_up ;
top200AvgExplowBand.Hide();
AddCloud(top200AvgExp, top200AvgExpupBand,  Color.WHITE, Color.WHITE);
AddCloud(top200AvgExp, top200AvgExplowBand,  Color.WHITE, Color.WHITE);
top200AvgExp.SetDefaultColor(Color.MAGENTA);
######################################################################

plot top100AvgExp = ExpAverage(price[-displace], length2) * 1.08;
plot top100AvgExpupBand = top100AvgExp + Num_Dev_up ;
top100AvgExpupBand.Hide();
plot top100AvgExplowBand = top100AvgExp + Num_Dev_Dn ;
top100AvgExplowBand.Hide();
AddCloud(top100AvgExp, top100AvgExpupBand,  Color.WHITE, Color.WHITE);
AddCloud(top100AvgExp, top100AvgExplowBand,  Color.WHITE, Color.WHITE);
top100AvgExp.SetDefaultColor(Color.CYAN);


##################################################################
plot top500AvgExp = ExpAverage(price[-displace], length1) * 1.05;
top500AvgExp.SetDefaultColor(Color.YELLOW);
plot top500AvgExpupBand = top500AvgExp + Num_Dev_Dn ;
top500AvgExpupBand.Hide();
plot top500AvgExplowBand = top500AvgExp + Num_Dev_up ;
top500AvgExplowBand.Hide();
AddCloud(top500AvgExp, top500AvgExpupBand,  Color.WHITE, Color.WHITE);
AddCloud(top500AvgExp, top500AvgExplowBand,  Color.WHITE, Color.WHITE);

##########################################################################
plot top100AvgExp1 = ExpAverage(price[-displace], length2) * 1.19;
plot top100AvgExp1upBand = top100AvgExp1 + Num_Dev_Dn ;
top100AvgExp1upBand.Hide();
plot top100AvgExp1lowBand = top100AvgExp1 + Num_Dev_up ;
top100AvgExp1lowBand.Hide();
AddCloud(top100AvgExp1, top100AvgExp1upBand,  Color.WHITE, Color.WHITE);
AddCloud(top100AvgExp1, top100AvgExp1lowBand,  Color.WHITE, Color.WHITE);
top100AvgExp1.SetDefaultColor(Color.DARK_ORANGE);

def data = close;
def top200 = top200AvgExp - data;
plot dist200 = Round(top200 / top100AvgExp * 100, 2);