This smoothness enables an increased trader ability to visualize and track longer-term trends and removes the noise of smaller, relatively insignificant price fluctuations.
* RSS_WMA is deliberately built to be a "lazy line" - and it works in a different way to other common moving averages that attempt to achieve less lag and quicker responsiveness - the idea and the use scenario is to act as a "smooth base" when used against a faster moving average like the v_Wave of the Co_Ra Wave
* Note that the settings of this line is "Smoothness' and not "length" - the initial length used for the first pass calculation is 1/3 of that smoothness value selected in the settings
* Increments in the combined smoothness value will be allocated first to 1st pass, then 2nd pass, then 3rd pass consecutively then back to 1st pass.
* because we utilize 3 passes, a settings below 3 will have no effect on the line and it will just track the "source" price.
- Use RSS_WMA when you're looking for a that can help you analyze you chart at a broader / macro level, visualize the broader price action patterns and filter out the noise from short-term moves. you can also use this line to help set your position exits since only major and persistent moves will cause this line, as lay as it is, to swing from one direction to the other.
How does RSS_WMA compare?
here's a quick view of how the RSS_WMA compared to other commonly used Moving Averages, including my recently published CoRa_Wave
Code is commented - please feel free to use and customize further - please share a comment if you found this useful in your chart analysis or trading.
- the signal will be off by default. enable in settings
- in real time, these swing signals will only plot **after** the current bar closes. that's the preferred behavior for most traders, but can be changed in the code (should we make that a user option ?)
- this works best for scenarios where RSS_WMA is used on top of other plots
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.