The strength of the CMA is that the current value of the time series must exceed the current volatility-dependent threshold, so that the filter increases or falls, avoiding false signals in weak phases.
The straight line of CMA can be used for a ranging market identification
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publications is governed by House rules. You can favorite it to use it on a chart.
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.