Day Trader's Anchored Moving Averages [wbburgin] for ThinkOrSwim

samer800

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Author Message:
For day traders, establishing a trend at the start of the day is critically important for setting targets and entering positions. This can be difficult when traditional moving averages lag from previous days, causing late entry and/or incorrect trend interpretation.

The Day Trader's Anchored MA indicator plots three dynamic moving averages which restart on each new period (session or monthly - more coming soon). This eliminates the lag in traditional moving averages while better identifying the trend, as the moving averages essentially 'build up' their lengths as the day progresses, until they reach your chosen maximum length.

This means that these anchored moving averages are
  1. Quicker to identify the start-of-day trend, as markets tend to establish and then follow one trend throughout the day;
  2. Dynamically increasing throughout the day (to your specifications)
  3. Completely independent from previous days

Quick usage note: make sure that your moving average length is less than the number of bars in the period, or it won't reach the maximum length you specified.

CODE:

CSS:
#// https://www.tradingview.com/v/XqWFNfGN/
#// © wbburgin
#indicator("Day Trader's Anchored Moving Averages [wbburgin]"
# Converted and mod by Sam4Cok@Samer800    - 09/2023
input source = close;        # "Source",
input showCloud = yes;    # "Highlighting"
input colorBar = yes;
input diplayMovAvg = {default "Average Line", "Multiple Lines"};
input showMovAvg1 = yes;         # "Moving Average #1"
input length1 = 50;
input showMovAvg2 = yes;         # "Moving Average #2"
input length2 = 100;
input showMovAvg3 = yes;         # "Moving Average #3"
input length3 = 200;
input period = {default "Day", "Month"};    # "Anchor Change Period"

def na = Double.NaN;
def multi = diplayMovAvg == diplayMovAvg."Multiple Lines";
def cloudCond = multi and showCloud;
def ohlc = ohlc4;
def dayofmonth = GetDayOfMonth(GetYYYYMMDD());
def month = GetMonth();
def day = period == period."Day";
def anchor_reset = if day then (dayofmonth - dayofmonth[1])
                   else (month - month[1]);

script anchored_ma {
    input source = close;
    input length = 50;
    input anchor_reset_period = yes;
    def barssince = if anchor_reset_period then 0 else barssince[1] + 1;
    def num = Min(barssince, length);
    def sum = fold i = 0 to num with p do
              p + GetValue(source, i);
    def ma = if anchor_reset_period then source else
             if num > 0 then sum / num else source;
    plot out = ma;
}

def ma_1 = anchored_ma(source, length1, anchor_reset);
def ma_2 = anchored_ma(source, length2, anchor_reset);
def ma_3 = anchored_ma(source, length3, anchor_reset);
def ma1 = ma_1;
def ma2 = ma_2;
def ma3 = ma_3;
def avg_Ma = (ma1 + ma2 + ma3) / 3;

def extUp = ohlc > ma1 and  ma1 > ma2 and ma2 > ma3;
def norUp = ohlc > ma1 and  ma1 > ma3;
def extDn = ohlc < ma1 and  ma1 < ma2 and ma2 < ma3;
def norDn = ohlc < ma1 and  ma1 < ma3;

plot AvgMa = if multi then na else avg_Ma;
plot map1 = if !showMovAvg1 or !multi then na else ma1;    # "Anchored MA 1"
plot map2 = if !showMovAvg2 or !multi then na else ma2;    # "Anchored MA 2"
plot map3 = if !showMovAvg3 or !multi then na else ma3;    # "Anchored MA 3"

AvgMa.SetDefaultColor(Color.MAGENTA);
map1.SetDefaultColor(Color.CYAN);
map2.SetDefaultColor(Color.WHITE);
map3.SetDefaultColor(Color.ORANGE);

AddCloud(if cloudCond then ma1 else na, ohlc,  Color.DARK_RED,  Color.DARK_GREEN);
AddCloud(if cloudCond then ma2 else na, ohlc, Color.DARK_RED, Color.DARK_GREEN);
AddCloud(if cloudCond then ma3 else na, ohlc, Color.DARK_RED, Color.DARK_GREEN);


AssignPriceColor(if !colorBar then Color.CURRENT else
                 if extUp then Color.GREEN else
                 if norUp then Color.DARK_GREEN else
                 if extDn then Color.RED else
                 if norDn then Color.DARK_RED else Color.GRAY);


#-- END of CODES
 

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@samer800 interesting, not sure which average type it is, hull, simple, or exponential?

If you have a great need to name this dynamic moving average; you could kind-of, sort-of go with "simple".
But not really.

It is dynamic.
At the beginning of the day, it has only a few inputs, it averages in more data points as the day goes on.

THIS is of critical importance and MUST be customized to every chart; this study is use on:
make sure that your moving average length is less than the number of bars in the period, or it won't reach the maximum length you specified.
Meaning the number of bars in a day on a 5min chart is obviously VASTLY different from the number of bars in a day on a 15min chart and you MUST adjust accordingly.
 
Last edited:
Soooo, are we turning off extended hours?

When adding an indicator to your chart. There is a customization period.
You need to analyze the settings of all the inputs of this indicator.
You need to analyze the timeframes and the bars that you populate your chart.

THIS is of critical importance and MUST be customized to every chart; this study is use on:
make sure that your moving average length is less than the number of bars in the period, or it won't reach the maximum length you specified.
Meaning the number of bars in a day on a 5min chart is obviously VASTLY different from the number of bars in a day on a 15min chart and you MUST adjust accordingly.

And yes, you need to review it with both extended hours on and off.

See how the various customizations interact with your strategy to better confirm your signals across your three timeframes, across multiple instruments, and through various market conditions.
 
Last edited:
this is interesting and wondering how does one use this? i see the MA being used are 50,100,200 but for a day trader on a 5m scalp, how is this to be used?
 
X2lC4wZ.png

Author Message:
For day traders, establishing a trend at the start of the day is critically important for setting targets and entering positions. This can be difficult when traditional moving averages lag from previous days, causing late entry and/or incorrect trend interpretation.

The Day Trader's Anchored MA indicator plots three dynamic moving averages which restart on each new period (session or monthly - more coming soon). This eliminates the lag in traditional moving averages while better identifying the trend, as the moving averages essentially 'build up' their lengths as the day progresses, until they reach your chosen maximum length.

This means that these anchored moving averages are
  1. Quicker to identify the start-of-day trend, as markets tend to establish and then follow one trend throughout the day;
  2. Dynamically increasing throughout the day (to your specifications)
  3. Completely independent from previous days

Quick usage note: make sure that your moving average length is less than the number of bars in the period, or it won't reach the maximum length you specified.

CODE:

CSS:
#// https://www.tradingview.com/v/XqWFNfGN/
#// © wbburgin
#indicator("Day Trader's Anchored Moving Averages [wbburgin]"
# Converted and mod by Sam4Cok@Samer800    - 09/2023
input source = close;        # "Source",
input showCloud = yes;    # "Highlighting"
input colorBar = yes;
input diplayMovAvg = {default "Average Line", "Multiple Lines"};
input showMovAvg1 = yes;         # "Moving Average #1"
input length1 = 50;
input showMovAvg2 = yes;         # "Moving Average #2"
input length2 = 100;
input showMovAvg3 = yes;         # "Moving Average #3"
input length3 = 200;
input period = {default "Day", "Month"};    # "Anchor Change Period"

def na = Double.NaN;
def multi = diplayMovAvg == diplayMovAvg."Multiple Lines";
def cloudCond = multi and showCloud;
def ohlc = ohlc4;
def dayofmonth = GetDayOfMonth(GetYYYYMMDD());
def month = GetMonth();
def day = period == period."Day";
def anchor_reset = if day then (dayofmonth - dayofmonth[1])
                   else (month - month[1]);

script anchored_ma {
    input source = close;
    input length = 50;
    input anchor_reset_period = yes;
    def barssince = if anchor_reset_period then 0 else barssince[1] + 1;
    def num = Min(barssince, length);
    def sum = fold i = 0 to num with p do
              p + GetValue(source, i);
    def ma = if anchor_reset_period then source else
             if num > 0 then sum / num else source;
    plot out = ma;
}

def ma_1 = anchored_ma(source, length1, anchor_reset);
def ma_2 = anchored_ma(source, length2, anchor_reset);
def ma_3 = anchored_ma(source, length3, anchor_reset);
def ma1 = ma_1;
def ma2 = ma_2;
def ma3 = ma_3;
def avg_Ma = (ma1 + ma2 + ma3) / 3;

def extUp = ohlc > ma1 and  ma1 > ma2 and ma2 > ma3;
def norUp = ohlc > ma1 and  ma1 > ma3;
def extDn = ohlc < ma1 and  ma1 < ma2 and ma2 < ma3;
def norDn = ohlc < ma1 and  ma1 < ma3;

plot AvgMa = if multi then na else avg_Ma;
plot map1 = if !showMovAvg1 or !multi then na else ma1;    # "Anchored MA 1"
plot map2 = if !showMovAvg2 or !multi then na else ma2;    # "Anchored MA 2"
plot map3 = if !showMovAvg3 or !multi then na else ma3;    # "Anchored MA 3"

AvgMa.SetDefaultColor(Color.MAGENTA);
map1.SetDefaultColor(Color.CYAN);
map2.SetDefaultColor(Color.WHITE);
map3.SetDefaultColor(Color.ORANGE);

AddCloud(if cloudCond then ma1 else na, ohlc,  Color.DARK_RED,  Color.DARK_GREEN);
AddCloud(if cloudCond then ma2 else na, ohlc, Color.DARK_RED, Color.DARK_GREEN);
AddCloud(if cloudCond then ma3 else na, ohlc, Color.DARK_RED, Color.DARK_GREEN);


AssignPriceColor(if !colorBar then Color.CURRENT else
                 if extUp then Color.GREEN else
                 if norUp then Color.DARK_GREEN else
                 if extDn then Color.RED else
                 if norDn then Color.DARK_RED else Color.GRAY);


#-- END of CODES
What setting would you recommend on 1 min time frame?

Also, can this be converted into multi-tike frame indicator?

Thank you!
 
this is interesting and wondering how does one use this? i see the MA being used are 50,100,200 but for a day trader on a 5m scalp, how is this to be used?
What setting would you recommend on 1 min time frame?

Also, can this be converted into multi-tike frame indicator?

Thank you!

Yes, this a day trading indicator.
No, you would not use this on scalping timeframes.
Regardless of what changes you make to the moving average lengths.
They would still be a lagging indicator so not appropriate for scalping.

Read more:
https://usethinkscript.com/threads/...-indicator-in-your-opinion.16487/#post-130704
 
Last edited:

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