Ratio Smoothed, Volume Weighted Moving Average

21 thg 1, 2023

This is experimental moving average doesn't use a period/length but instead buffers the price per share and transfers that price per share at a given ratio per bar while also releasing the previous values at a decay ratio.

The idea is that volume is the engine by which the price moves but spikes in volume can cause noise. By having a buffer of price per share units, this VWMA style indicator can behave more like a WMA combined with volume (VAWMA) but smooths out the noise of recent volume. The end result is a price movement that is smooth but also still based strongly up on the average price per share and will always eventually catch up to the true price per share value.

A metaphor to understand this could be a bucket with a hole in it where water is flowing sporadically into the bucket. The level of water in the bucket may change drastically but instead of all the water emptying out immediately, it is throttled by the hole in the bottom. As the level rises, the water pressure increases and the flow increases so that the virtual bucket never has a chance to fill up but also never really empties either.

21 thg 1, 2023

Phát hành các Ghi chú

Fixed description and thumbnail.

21 thg 1, 2023

Phát hành các Ghi chú

Added feature for using time instead of bars so that the plot can stay consistent across multiple time-frames.

26 thg 1, 2023

Phát hành các Ghi chú

Allow for smaller minimum.