Explanation from Mladen:
The usual story goes something like this : which is the best moving average? Everyone that ever started to do any kind of technical analysis was pulled into this "game". Comparing, testing, looking for new ones, testing ...
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The idea of this one is simple : it should not be itself, but it should be a kind of a chameleon - it should "imitate" as much other moving averages as it can. So the need for zillion different moving averages would diminish. And it should have some extra, of course :The extras :it has to be smoothit has to be able to "change speed" without length changeit has to be able to adapt or not (since it has to "imitate" the non-adaptive as well as the adaptive ones)
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The steps :smoothing - compared are the simple moving average (that is the basis and the first step of this indicator - a smoothed simple moving average with as little lag added as it is possible and as close to the original as it is possible) Speed 1 and non-adaptive are the reference for this basic setup."speed changing" - same chart only added one more average with "speeds" 2 and 3 (for comparison purposes only here)finally - adapting : same chart with SMA compared to one more average with speed 1 but adaptive (so this parameters would make it a "smoothed adaptive simple average") Adapting part is a modified Kaufman adapting way and this part (the adapting part) may be a subject for changes in the future (it is giving satisfactory results, but if or when I find a better way, it will be implemented here)
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Some comparisons for different speed settings (all the comparisons are without adaptive turned on, and are approximate : approximation comes from a fact that it is impossible to get exactly the same values from only one way of calculation, and frankly, I even did not try to get those same values)speed 0.5 - T3 (0.618 Tilson)speed 2.5 - T3 (0.618 Fulks/Matulich)speed 1 - SMA, harmonic meanspeed 2 - LWMAspeed 7 - very similar to Hull and TEMAspeed 8 - very similar to LSMA and Linear regression valueDue to some properties of this average, it is very convenient to use it as a part of other indicators for pre- (as a filter before calculation) and post- smoothing. Some of the indicators that are going to be posted in this section are going to use this way to achieve those goals
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And, the last (it might be posted before the rest, but Parameters :Length- length (period) for averaging AppliedPrice- price to use for averaging (it uses the usual metatrader values :0 - close1 - open2 - high3 - low4 - median (high+low)/25 - typical (high+low+close)/36 - weighted (high+low+close+close)/4Speed- desired speed (i limited to -1.5 on the lower side but it even does not need that limit - some interesting results with speeds that are less than 0 can be achieved)Adaptive- does it adapt or not
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This version is the same as above except added the 22 new price options,double smoothing option,the capability to filter the price ,oma values or both, and the new lighter mtf.
