TMA center channel bands
Here is another channel upper and lower bands indicator, this one is made of a centered Triangular Moving Average with classic deviation from this mean, made of plus and minus ATR multiplicated value. Quiet popular in the forex trading community, it is the base of many more or less sophisticated strategy, do your homework with this one, you’ll find it is valuable for different market phase.
// parameters
// HalfLength = 50
// AtrLength = 100
// AtrMultiplier = 2.0
avg = average[1](close)
sum = (HalfLength+1)*avg
sumw = (HalfLength+1)
k = HalfLength
for j = 1 to HalfLength do
k = k-1
sum = sum+(k*avg[j])
sumw = sumw+k
next
buffer1 = sum/sumw
myrange = AverageTrueRange[AtrLength](close)*AtrMultiplier
buffer2 = buffer1+myrange
buffer3 = buffer1-myrange
RETURN buffer1 coloured(0,220,0) as "TMA", buffer2 coloured(220,0,0) as "upper band", buffer3 coloured(0,220,0) as "lower band"
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Just for information: This calculate code is interesting, but it is not a Triangular Moving Average, but A Weighted Moving Average. Nowadays with new version of PRT So, to reduce the calculate time. It is possible to cancel from line 6 to 16 and change line 18 by: Buffer1 = WeightedAverage[HalfLength](close) or Buffer1 = average[HalfLength,2](close) Thanks
// TMA CENTER Channel by Dave modifié // parameters // HalfLength = 50 // AtrLength = 100 // AtrMultiplier = 2.0 perso = 3.6 // AtrLength1 = 100 // AtrMultiplier1 = perso = 6.1 avg = average[1](close) sum = (HalfLength+1)*avg sumw = (HalfLength+1) k = HalfLength for j = 1 to HalfLength do k = k-1 sum = sum+(k*avg[j]) sumw = sumw+k next buffer1 = sum/sumw myrange = AverageTrueRange[AtrLength](close)*AtrMultiplier buffer2 = buffer1+myrange buffer3 = buffer1-myrange //////////////////////////////////////////////////////////// myrange1 = AverageTrueRange[AtrLength1](close)*AtrMultiplier1 buffer4 = buffer1+myrange1 buffer5 = buffer1-myrange1 //////////////////////////////////////////////////////////// RETURN buffer1 coloured(0,220,0) as "TMA", buffer2 coloured(220,0,0) as "upper band", buffer3 coloured(0,220,0) as "lower band",buffer4 coloured(220,0,0) as "upper band1", buffer5 coloured(0,220,0) as "lower band1"