This is a custom technical indicator that combines multiple smoothing and weighted calculation steps to capture changes in price momentum. The specific calculation process is as follows:
1. PMI_LA Indicator Smoothing Period (sm): Used to apply exponential moving average (EMA) multiple times to smooth price data. Constant D (cd): Used to adjust the sensitivity and shape of the indicator. Color Bars (ebc) and Ribbon Mode (ribm): Used for visual highlighting of the indicator. Overview of the Calculation Process:
Apply EMA multiple times to smooth price data. Use multiple weighted coefficients (based on cd) to linearly combine the smoothed data, generating the final PMI_LA trend line. Dynamically adjust its color based on changes in the trend line (green indicates rising, red indicates falling, blue indicates no change).
2. ATR (Average True Range) ATR (Average True Range) is an indicator that measures market volatility by calculating the price fluctuation over a certain period. ATR Period (c): Defines the number of historical periods required for ATR calculation. ATR Multiplier (a): Used to adjust the impact of ATR, thereby affecting the upper and lower bands of the trend line.
3. EMA (Exponential Moving Average) EMA (Exponential Moving Average) is used to generate a smooth price trend line. Although in the code the EMA period is set to 1 (i.e., ema(src_bsi, 1)), its main role is to assist in calculating trend changes.
4. Heikin Ashi Candles (Optional) Heikin Ashi Candles are an improved candlestick display method, aiming to filter out market noise and provide a clearer trend illustration. Through the parameter h, users can choose whether to use Heikin Ashi candlestick data for calculation.
5. Logic and Conditions BUY: When the price breaks above the ATR-adjusted upper band from below, and the EMA crosses above the upper band, indicating that the market may be starting a new upward trend, issuing a buy signal. SELL: When the price breaks below the ATR-adjusted lower band from above, and the EMA crosses below the lower band, indicating that the market may be starting a new downward trend, issuing a sell signal.
No verdadeiro espírito do TradingView, o autor desse script o publicou como código aberto, para que os traders possam compreendê-lo e analisá-lo. Parabéns ao autor! Você pode usá-lo gratuitamente, mas a reutilização desse código em publicações é regida pelas Regras da Casa. Você pode favoritá-lo para usá-lo em um gráfico.
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