The Natural Moving Average was created by Jim
Sloman (Ocean Theory pgs
63-70) and this is the one of the best moving averages you will find! This is one of the most adaptive moving averages that I have ever seen that accounts for all types of volatility
. I have included a default value of 40
for the length so you can see just how close this moving average sticks to the underlying price movements. Feel free to try out your own lengths to see what you like best. I have included strong buy and sell signals in addition to normal ones so darker colors mean strong signals and lighter colors mean normal ones. Buy when the line turns green and sell when it turns red.
Let me know if there are any other scripts you would like to see me publish!