OPEN-SOURCE SCRIPT
[blackcat] L1 Buff Average
Level: 1
Background
This indicator buffs up your moving averages using the volume-weighting method presented in Buff Dormeier's article in 2001, "Buff Up Your Moving Averages." The weighting formula has been created as a function in pine script so that it can be referenced from any analysis technique or strategy. In addition, a simple two-line volume-weighted average indicator that references the function has also been included.
Function
The name of the volume-weighted average function is "BuffAverage()." The function has two inputs, price and length. The price input represents the price value upon which the average calculation is based. The length input represents the number of bars that are used in the calculation of the average. The two-line volume-weighted average indicator is presented. This indicator has three inputs. The price input represents the price value upon which the average calculation is based. The FastAvg input represents the number of bars to use in the fast volume-weighted average calculation. The SlowAvg input represents the number of bars to use in the slow volume-weighted average calculation. A simple alert criteria has also been included to provide an alert when the two lines cross.
Key Signal
FastBuff Line --> fast line in yellow;
SlowBuff Line --> slow line in fuchsia.
Remarks
This is a Level 1 free and open source indicator.
Feedbacks are appreciated.
Background
This indicator buffs up your moving averages using the volume-weighting method presented in Buff Dormeier's article in 2001, "Buff Up Your Moving Averages." The weighting formula has been created as a function in pine script so that it can be referenced from any analysis technique or strategy. In addition, a simple two-line volume-weighted average indicator that references the function has also been included.
Function
The name of the volume-weighted average function is "BuffAverage()." The function has two inputs, price and length. The price input represents the price value upon which the average calculation is based. The length input represents the number of bars that are used in the calculation of the average. The two-line volume-weighted average indicator is presented. This indicator has three inputs. The price input represents the price value upon which the average calculation is based. The FastAvg input represents the number of bars to use in the fast volume-weighted average calculation. The SlowAvg input represents the number of bars to use in the slow volume-weighted average calculation. A simple alert criteria has also been included to provide an alert when the two lines cross.
Key Signal
FastBuff Line --> fast line in yellow;
SlowBuff Line --> slow line in fuchsia.
Remarks
This is a Level 1 free and open source indicator.
Feedbacks are appreciated.
Open-source script
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 publication is governed by House rules. You can favorite it to use it on a chart.
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Disclaimer
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