Below are the settings used for this indicator and what they mean and do:
- Moving Average Length: The lookback period for the moving average calculation.
- Length To Measure Volatility: The lookback period to compare the of the current candle to. Ex: This candle is high/average/low compared to the candles in the last X candles
- Volatility Divisions: The more divisions the more precise the weighting is on candle . With more divisions, there are typically fewer candles that can qualify as peak within the weight type.
- Amplify Peak In Weight Type: This is an extra weight applied to candles with peak to further help weight the moving average in the direction of desired .
- Start Source Of Volatility: The starting point of measuring . is measured as the difference in start - end source.
- End Source of Volatility: The ending point of measuring . is measured as the difference in start - end source.
- Moving Average Source: The data source of the candle when used to calculate the moving average.
- Moving Average Type: You can choose between a Weighted "Weighted Moving Average ( )", and a Weighted "Simple Moving Average( )". The and respectively will somewhat resemble the actual and of the same moving average length, but the will be weighted to shift values based on your settings.
- Weight Type: The type of that should be valued most. High values candles with the highest , average values candles that are within the average range of most, and the low option weights candles with the least the most.
- Moving Average Smoothing Length ( ): This will smooth the final line with an . The weighting can produce jagged lines by itself, so it is smoothed slightly by default.
Why this indicator was made: I made this indicator because I wanted to visually interpret the effects of on moving averages and if it could help identify any patterns in breakouts, trends, or consolidation periods.
The theory: Using a weight type of high you might be able to identify breakouts with a sharp value incline or decline in slope. An average weight type would help identify trends as it could potentially reduce noise from very large and very small candles and focus more on the value of average candles - I believe for the theory on this one to work you would actually want to use less "Volatility Division" in order to include more average-sized candles in the peak weight. Finally, using a weight type of low could help identify periods of consolidation.