Average Price Convergence QuantAlgo
- Indicatori
- Krystof Zak
- Versione: 1.0
This indicator generates a moving average that adjusts towards the price as a trend continues to form new higher-highs or lower-lows, based on the identified trend.
Settings
Length: Determines the initial smoothing factor of the moving average (2 / (Length + 1)), and also sets the period for calculating rolling maximums/minimums.
Increment: Controls the increment in smoothing factor (2 / (Increment + 1)) for each new higher-high or lower-low. Lower values result in a faster converging moving average.
Fast: Smoothing factor for the fast moving average.
Usage
The provided moving average can be applied similarly to most slow moving averages.
By having a moving average that converges closer to the price as a trend persists, traders can receive more timely crossover signals.