How do I use it?
- Never use this indicator as standalone trading signal, it should be used as confluence.
- When the price is above the moving average this shows the bullish trend is strong.
- When the price is below the moving average this shows the bearish trend is strong.
- When the moving average is purple, the trend is bullish, when it is gray, the trend is bearish.
Features:
- Purple line for bullish trend and gray line for bearish trend.
- Custom formula combining an ATR and Hull MA to clearly indicate trend strength and direction.
- Unique approach to moving averages by taking the average of 3 types of MA's combined with custom ATR's.
How does it work?
1 — ATR value is calculated, then the correlation between the source and ATR is calculated.
2 — Signal value is calculated from the difference between the previous source and ATR values.
3 — Final value is being calculated using the following formula:
cor * target + (1 - cor) * nz(atr[1], target)
4 — Moving average is calculated by getting the average of 3 values: a normal HMA, HMA plus final value, and HMA minus final value.