This is Linear Weighted Moving Average (LWMA) is similar to Simple Moving Average (SMA) except that a weight coefficient is multiplied to the price.
Formula :
LWMA = SUM(Close(i)*i, N) / SUM(i, N)
Formula :
LWMA = SUM(Close(i)*i, N) / SUM(i, N)
This indicator uses the following formula :
T3MA = c1*e6 + c2*e5 + c3*e4 + c4*e3
Where :
e1 = EMA (CLOSE, Period)
e2 = EMA (e1, Period)
e3 = EMA (e2, Period)
e4 = EMA (e3, Period)
e5 = EMA (e4, Period)
e6 = EMA (e5, Period)
c1 = - b3
c2 = 3*b2 + 3*b3
c3 = - 6*b2 - 3*b - 3*b3
c4 = 1 + 3*b + b3 + 3*b2
(EMA = Exponential Moving Average, b = volume factor (default = 0.7))
The first Value is a Simple Moving Average (SMA) and All Subsequent values are calculated based on the Previous value according to the following formula :
SUM(1) = SUM(CLOSE, N)
WSMA(1) = Simple MA = SUM(1)/N - Wilder’s Smoothing for the first period.
WSMA(i) = (SUM(i - 1) - WSMA(i - 1) + CLOSE(i)) / N
by rijay, Thu Dec 06, 2018 11:10 pm in MT5 Indicators
by rijay, Sun Apr 14, 2019 3:03 am in Trading Systems