Iterative Moving Average
- Indicadores
- Aleksey Ivanov
- Versión: 3.0
- Actualizado: 26 mayo 2023
- Activaciones: 5
Iterative Moving Average – IMA. IMA is obtained by correcting the usual MA. The correction consists in addition to MA averaged difference between the time series (X) and its MA, i.e. IMA(X)=MA(X) + MA (Х-MA(X)). Correction is done in several iterations (and, exactly, 2 iterations in this indicator) and with a change in the averaging period.
As a result, the time-series points begin to cluster around (on all sides) of the getting IMA and with a smaller delay than around the usual MA. Therefore, IMA is a more effective tool for manual and automatic trading than all types of conventional MA (SMA, EMA, SSMA, LMA). Formulas for IMA are given in the last screenshot.
Indicator Settings.
- Price type. Values: Close price, Open price, High price, Low price, Median price ((high + low)/2 - default), Typical price ((high + low + close)/3), Weighted price ((high + low + 2*close)/4).
- The averaging method. Values: Simple, Exponential (default), Smoothed, Linear weighted.
- The main averaging period. Integer. Default is 14.
- Coefficient of division of the averaging period. - The coefficient determines the period of the next iteration. Values: any positive real number, which is not zero. Default is 1.62 (Golden Ratio).
- Dimensions of markers - Marker sizes to display forecast points. Values: any positive integer from 0 to 5 (1 default).
- Show indicator data with arrows; false - line Type of data display. Values: true - arrows, false - line .
Amazing work by Aleksey. There is a lot of rubbish on this market that's packaged and sold to you nicely, but I feel as though I have come across a hidden gem discovering Aleksey's work. I also find his blog site very interesting, as he sort of covers a lot of the theory that goes into some of these indicator's he has engineered. This guy is really onto something here.
There is lots of great moving average variations that have been formulated over the years, but this is definitely something unique, and if used correctly, and paired with other MA's, it could really be a stepping stone in building your system that has an edge over the majority.