"Squared Moving Average"

[BlueRaven]

Don't mind the rest of this link, I'm basically interested in recreating this indicator in TOS. It's the 3rd response on this thread and he describes it basically as "a Price Based Donchian Channel" that only uses the center line. On another thread he mentioned it's only 10 lines of code in easy language.

I've got Donchian channel code for TOS and have been playing around with it but haven't quite figured out what he's doing. I'm fairly experienced with thinkscript, I just wanted to get a few more eyes on this and see if anyone has any ideas.

https://forum.ampfutures.com/forum/...lionaire-in-10-weeks-conversation-with-broker
edit: I found some more info from him

"My 2 clouds are not based on time or n previous bars, they are based on a fixed price range and yes the darker cloud (longer TF) is set on a 10-12 pt range while the lighter cloud is set on a smaller 6-8 pt range to capture the change in trend. "

 

[muztem]

No but it would just be a matter of playing with the settings to get the clouds to fit. He provides plenty of samples of what it should look like in this forum posts I linked.

also on your post its 15-2-25-30 but in the settings 12-15-18-21? which one is better with es do you have idea?

 

[BlueRaven]

IS IT ONLY FOR FUTURES ?

The original author only intended to use it on /RTY. I've been playing with it on /ES.

To use it on a variety of instruments it would need some kind of auto adjusting/tuning setup, possibly off of ATR on a regular chart.

Every stock would need different settings and I'm not sure you would ever get a consistent performance.

 

[BlueRaven]

also on your post its 15-2-25-30 but in the settings 12-15-18-21? which one is better with es do you have idea?

I haven't done enough testing. I have it on 20,30,30,40 right no on /ES.

with limited back testing on the tickcharts I don't know if I will ever have enough info to get a good feel for it. Also the market from feb-apr was too erratic for this indicator and just totally overran it. So even on one instrument it probably needs some sort of auto adjust to be reliable.

 

[tradebyday]

Correct, this is a tool for day traders to utilize on a single instrument consistently. If you wonder if it works on something other than /ES or /RTY, then download it, play with the settings and determine if it is the right tool for you. Doesn't mater if you're given the perfect settings if it doesn't mach your trading style

 

[tradegeek]

@BlueRaven Thank you for converting this to TOS and bringing attention to the author of the thread at future.io. It looks like a promising tool for support and resistance. In the uptrend it looked great but I had some separation between the two bands in the downtrend. Adjusting the numbers in the settings solved this. There are areas where the bands didn't look as neat and would overlap but I realize those are usually areas of non-trending chop.

 

[madeinnyc]

@BlueRaven - Very good contribution to the group! Thank you!!

 

[madeinnyc]

@BlueRaven , would you happen to have the single Squared MA that the author illustrates on Futures io? The single line that turns from blue to white? I would like to see how that plots on a 1000 tick chart of the NQ. Thanks in advance!

 

[BlueRaven]

@BlueRaven , would you happen to have the single Squared MA that the author illustrates on Futures io? The single line that turns from blue to white? I would like to see how that plots on a 1000 tick chart of the NQ. Thanks in advance!

I've played around with that some and never got the single line to change colors exactly as demonstrated. I believe he is still using two of the "squared moving averages" to determine when to change the color.

I've moved on from this at this point, but feel free to play around with it if you want.

 

[thebewb]

This is fantastic stuff... anyone buy Warzone from scriptstotrade? Its basically derived from this... this one is so much better though.

 

[bcnhill]

Thanks for posting this indicator, I am finding it to be very helpful on Renko charts set to ATR. Seriously considering using it instead of the Swing Arm indicator going forward.

 

[mashume]

Awesome work! Thanks