The Trend Trading Indicator: Period Adaptive MA is a modification of the standard Moving Average indicator.
Unlike the traditional moving average, the Period Adaptive MA is tied to the start of a selected period (e.g., daily). When the first hour closes, the average period will be 1, when the second hour closes, it will be 2, and so on.
As a result, we always have the average price for the day. Similarly, the indicator can be tied to any other period—weekly or monthly.
Parameters of the Period Adaptive MA Indicator
MethodMA – method of the moving average:
- 0 – Simple (simple average)
- 1 – Exponential (exponential average)
- 2 – Smoothed (smoothed average)
- 3 – Linear Weighted (linear weighted average)
PriceMA – price used to calculate the average:
- 0 – Close (based on closing prices)
- 1 – Open (based on opening prices)
- 2 – High (based on candle highs)
- 3 – Low (based on candle lows)
- 4 – Median Price (based on median price (High+Low)/2)
- 5 – Typical Price (based on typical price (High+Low+Close)/3)
- 6 – Weighted Close (based on weighted close price (High+Low+Close+Close)/4)
LargeTF – time frame used as the base
The start of a new candle on this time frame serves as the reference point for calculating the average values from the beginning:
- 1 – M1
- 5 – M5
- 15 – M15
- 30 – M30
- 60 – H1
- 240 – H4
- 1440 – D
- 10080 – W
- 43200 – MN
When using the Trend Trading Indicator: Period Adaptive MA, it’s important to note that if the current time frame is equal to or larger than the LargeTF time frame, the indicator will not work. In such cases, an appropriate message will appear in the top-left corner of the screen.
- Download the Trend Trading Indicator: Period Adaptive MA
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FAQ
What is the Period Adaptive MA?
The Period Adaptive MA is a modified version of the Moving Average that adjusts to price changes on different time frames.
How does the Period Adaptive MA work?
The Period Adaptive MA is tied to the start of a selected period, such as daily, weekly, or monthly, and recalculates the average based on the time frame.
What are the benefits of using the Period Adaptive MA?
The Period Adaptive MA provides traders with a more accurate representation of price trends by adjusting to different time frames, helping in better decision-making.
