OPEN-SOURCE SCRIPT
Updated Moving Average SAR
Hello Traders,
Today, I have brought to you an indicator that utilizes the Parabolic SAR.
To begin with, the Parabolic SAR is an indicator that trails the price in the form of a parabola, seeking out Stop And Reverse points.
The indicator I present merges the calculation formula of the Parabolic SAR with the Moving Average.
One aspect I pondered over was how to determine the starting point of this SAR. Trailing the price flow with the logic set by the moving average was fine, but the question was where to begin.
My approach involves a variable I call 'sensitiveness,' which automatically adjusts the length according to the timeframe you are observing. Using pinescript's math.ceil, I formulated:
Pine Script®
This formula represents the length, and through variables like:
Pine Script®
I have managed to set the risk at a level that does not impose too great a burden.
Moreover, the 'Trend Strength Parameter' allows you to choose how strongly to trail the current price.
Lastly, think of the Band Width as a margin for accepting changes in the trend. As the value increases, the Band Width expands, measured through the ATR.
This indicator is particularly useful for holding positions and implementing trailing stops. It will be especially beneficial for those interested in price tracking of trends, like with Parabolic SAR or Supertrend.
I hope you find this tool useful.
Today, I have brought to you an indicator that utilizes the Parabolic SAR.
To begin with, the Parabolic SAR is an indicator that trails the price in the form of a parabola, seeking out Stop And Reverse points.
The indicator I present merges the calculation formula of the Parabolic SAR with the Moving Average.
One aspect I pondered over was how to determine the starting point of this SAR. Trailing the price flow with the logic set by the moving average was fine, but the question was where to begin.
My approach involves a variable I call 'sensitiveness,' which automatically adjusts the length according to the timeframe you are observing. Using pinescript's math.ceil, I formulated:
interval_to_len = timeframe.multiplier * (timeframe.isdaily ? 1440 : timeframe.isweekly ? 1440 * 7 : timeframe.ismonthly ? 1440 * 30 : 1)
main_len = math.ceil(sensitiveness / interval_to_len)
This formula represents the length, and through variables like:
_highest = math.min(ta.highest(high, main_len), close + ta.atr(46)*4)
_lowest = math.max(ta.lowest(low, main_len), close - ta.atr(46)*4)
I have managed to set the risk at a level that does not impose too great a burden.
Moreover, the 'Trend Strength Parameter' allows you to choose how strongly to trail the current price.
Lastly, think of the Band Width as a margin for accepting changes in the trend. As the value increases, the Band Width expands, measured through the ATR.
This indicator is particularly useful for holding positions and implementing trailing stops. It will be especially beneficial for those interested in price tracking of trends, like with Parabolic SAR or Supertrend.
I hope you find this tool useful.
Release Notes
I've added an option for signals that I initially overlooked.If you select 'Show Signals', it is set to display the signals.
Release Notes
Fixed OverlayOpen-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
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.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
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.