TASC's January 2023 edition of Traders' Tips includes an article titled "True Range Adjusted Exponential Moving Average (TRadj EMA)" by Vitali Apirine. This code implements the indicator presented in that publication.
█ CONCEPTS
The True Range Adjusted Exponential Moving Average (TRAdj EMA) is a trend-following indicator that considers volatility for a quicker response to price changes. It is an EMA that modulates its weighting factor based on the true range (TR) of the asset. In a trading strategy, traders can use a TRAdj EMA in tandem with an EMA of the same length to identify an asset's trend, or they can use it alongside another TRAdj EMA of a different length to identify turning points and filter price movements.
█ CALCULATIONS
The following steps are performed to calculate the indicator:
• Calculate the asset's TR according to the standard definition proposed by J. Welles Wilder, Jr. • Define the true range adjustment factor as: TRAdj =(Current TR − Minimum TR) ⁄ (Maximum TR − Minimum TR), where Maximum TR and Minimum TR are the maximum and minimum TR values over the specified lookback period. • Calculate the TRAdj EMA in the same manner as a traditional EMA, but with a weighting factor defined as: 2*(1 + TRAdj*Multiplier) ⁄ (EMA length + 1), where Multiplier is an input parameter that ranges from 5 to 10. For comparison, a traditional EMA uses a weighting factor of 2 ⁄ (EMA length + 1).
Hello, Do we have to add the EMA or is it built in? In the magazine it looked built in but I could be wrong. I just don't see it on the chart. Thank you
PineCodersTASC
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@theforexminer, Hi, thanks for the question. This script does not include a built-in EMA. So you'll have to add it separately. The EMA is shown on the preview chart for illustrative purposes only.
PapercutsTrading
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Super. I am going to try this and RSVAEMA together... see how it does.
cryptomaster6653
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@joelly3d, RSVAEMA Means ?
PapercutsTrading
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@cryptomaster6653, Relative Strength Volume Adjusted Exponential Moving Average
theforexminer
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Do I need to add the EMA to the chart because my indicator doesn't look
theforexminer
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Disregard....just had to close and reopen.... Disregard....just had to close and reopen....