The Regularized-MA Oscillator Suite is a versatile indicator that transforms any moving average into an oscillator. It comprises up to 13 different moving average types, including KAMA, T3, and ALMA. This indicator serves as a valuable tool for both trend following and mean reversion strategies, providing traders and investors with enhanced insights into market dynamics.
Methodology: The Regularized MA Oscillator Suite calculates the moving average (MA) based on user-defined parameters such as length, moving average type, and custom smoothing factors. It then derives the mean and standard deviation of the MA using a normalized period. Finally, it computes the Z-Score by subtracting the mean from the MA and dividing it by the standard deviation.
KAMA (Kaufman's Adaptive Moving Average): KAMA is a unique moving average type that dynamically adjusts its smoothing period based on market volatility. It adapts to changing market conditions, providing a smoother response during periods of low volatility and a quicker response during periods of high volatility. This allows traders to capture trends effectively while reducing noise.
T3 (Tillson's Exponential Moving Average): T3 is an exponential moving average that incorporates additional smoothing techniques to reduce lag and provide a more responsive indicator. It aims to maintain a balance between responsiveness and smoothness, allowing traders to identify trend reversals with greater accuracy.
ALMA (Arnaud Legoux Moving Average): ALMA is a moving average type that utilizes a combination of linear regression and exponential moving average techniques. It offers a unique way of calculating the moving average by providing a smoother and more accurate representation of price trends. ALMA reduces lag and noise, enabling traders to identify trend changes and potential entry or exit points more effectively.
Z-Score: The Z-Score calculation in the Regularized-MA Oscillator Suite standardizes the values of the moving average. It measures the deviation of each data point from the mean in terms of standard deviations. By normalizing the moving average through the Z-Score, the indicator enables traders to assess the relative position of price in relation to its mean and volatility. This information can be valuable for identifying overbought and oversold conditions, as well as potential trend reversals.
Utility: The Regularized-MA Oscillator Suite with its unique moving average types and Z-Score calculation offers traders and investors powerful analytical tools. It can be used for trend following strategies by analyzing the oscillator's position relative to the midline. Traders can also employ it as a mean reversion tool by identifying peak values above user-defined deviations. These features assist in identifying potential entry and exit points, enhancing trading decisions and market analysis.
Key Features:
Variety of 13 MA types.
Potential reversal point bubbles.
Bar coloring methods - Trend (Midline cross), Extremities, Reversions, Slope
Example Charts:
เอกสารเผยแพร่
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Extremities bar coloring fix.
เอกสารเผยแพร่
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Added alerts for Reservsion Bubbles.
เอกสารเผยแพร่
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Added Least Squares Moving Average, tweaked inputs.
@gianpierrecamacho, I have added the option in the script, enjoy.
kcrossland
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Looks very useful! I sell short term call options against my stocks and this looks great for finding exhaustion points. Many thanks!
ThemisCryptoz
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I am immensely grateful for the sharing of this invaluable knowledge tool. Its exceptional professionalism and meticulous design make it an invaluable resource for enhancing expertise. Thank you for providing this outstanding asset.
efremolo
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Super!
KerryQLD
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Love this. great for confirmation Elliott Waves also.
AwakeTrader
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Your Idea seems very interesting. Will try it. Thanks for sharing! I would recomend you to make a new version including EMA(20), EMA(55), HMA , LSMA. Regards
EliCobra
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@AwakeTrader, Hi, Hull and Exponential averages already exist in the script, I have updated the script as your request with LSMA.