[blackcat] L1 True Range Adjusted EMA (TRAdj EMA)

6 thg 1, 2023

Level: 1

Background

In Traders’ Tips in January 2023, Vitali Apirine published an article in the January 2023 issue, “True Range Adjusted Exponential Moving Average (TRAdj EMA)”.
I use pine v4 to script it.

Function

Vitali Apirine's article True Range Adjusted Exponential Moving Average (TRAdj EMA) presents how a security's True Range, which measures volatility, can be integrated into a traditional exponential moving average. The trend following indicator called True Range Adjusted Exponential Moving Average (TRAdj EMA) applied with different lengths can help define turning points and filter price movements. By comparing the indicator to an exponential moving average of the same length, the trader can gain insight into the overall trend.

Remarks

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OVERVIEW
The L1 True Range Adjusted EMA is a sophisticated technical indicator designed to enhance traditional EMA calculations by incorporating price volatility through True Range adjustments. This indicator creates dynamic moving averages that adapt to market conditions, providing more responsive trend-following signals than standard EMAs. 📈

FEATURES

• Dynamic EMA calculation based on price volatility
• Adjustable parameters for customization:

Periods: Controls the smoothing factor
PDS: Defines the period range for True Range analysis
Multiplier: Determines sensitivity to price movement • Visual representation with customizable colors and fill patterns • Automated trading signals with alerts
HOW TO USE

Parameter Setup

Adjust periods for desired smoothness level
Fine-tune pds to match your timeframe preference
Modify multiplier to control responsiveness
Interpretation

Green/Red fills indicate bullish/bearish momentum
Crossovers generate buy/sell signals
Monitor signal labels for trade opportunities
Integration

Add alerts for automated notifications
Combine with other indicators for confirmation
Backtest strategies using historical data
LIMITATIONS

• Requires sufficient historical data for accurate calculations
• May produce false signals during highly volatile markets
• Best suited for medium-term to long-term trading strategies

NOTES

✅ The indicator uses both fast and slow lines for enhanced analysis
✅ Color-coded alerts provide visual confirmation of signals
✅ Customizable appearance allows integration into existing setups