mrtools wrote: Sat Jul 13, 2024 9:34 am Adaptive Efficiency Ratio Regularized EMA

This is kind of different and turned out somewhat better than expected. This is an adaptive efficiency ratio Regularized EMA.

About the efficiency ratio explained by Mladen Rakic:

Theory :

The Efficiency Ratio (ER) was invented by Perry Kaufman as a measure of volatility and as a way of making some calculations adaptive. In his adaptive moving average he uses 3 periods for calculation which makes it a bit "cryptic" and, by all means, not so simple to use. This version is simplifying the whole thing without an intention to clone the KAMA (Kaufman Adaptive Moving Average) indicator - but with an intention to use the efficiency ratio for adapting the average calculations and to use only two parameters for that :

• Period
• Price
• No other parameters needed

Usage :

It can be used as any other moving average type indicator

Instead of an exponential moving average, this version is using the regularized ema.

PS: The standard EMA version for MT4 can be found here.