Interpolated SMA (ISMA)
The "Interpolated SMA" indicator is a technical analysis tool that uses a mathematical formula to smooth out fluctuations in the data and provide a clearer picture of the underlying trend. It is a variation of the Simple Moving Average (SMA) indicator, which is widely used in technical analysis. The key difference is that while the SMA indicator uses a fixed length to calculate the average, the ISMA indicator uses an interpolated length, which means it can use fractional values. This allows for more precision in the calculation of the moving average.
The script starts by importing the "Interpolation" library from Electrified/Interpolation/1, which provides the necessary functionality to interpolate the moving average. The script then defines a function called "sma" which takes two parameters: "source" and "length". The "source" parameter is used to specify the data that the indicator will be applied to. It is set to the "close" price by default, but can be changed to any other data source using the input function. The "length" parameter is used to specify the number of data points that will be used to calculate the moving average. It is set to 20.25 by default, but can be changed to any other value between 1 and 2000 with increments of 0.25 using the input function.
The function starts by initializing two variables: "sum" and "sma". The "sum" variable is used to store the sum of the data points. It is set to "na" (not available) by default. The "sma" variable is used to store the calculated moving average. It is also set to "na" by default. The function then uses a conditional statement to check if the "length" parameter is a fractional value. If it is, the function uses the linear interpolation function from the imported "Interpolation" library to calculate the moving average. If it is not, the function calculates the moving average using the traditional method.
Finally, the script uses the "plot" function to display the calculated moving average on the chart. The "Interpolated SMA" indicator is then overlayed on the chart and can be used to analyze trends and make predictions about future market movements.
The script starts by importing the "Interpolation" library from Electrified/Interpolation/1, which provides the necessary functionality to interpolate the moving average. The script then defines a function called "sma" which takes two parameters: "source" and "length". The "source" parameter is used to specify the data that the indicator will be applied to. It is set to the "close" price by default, but can be changed to any other data source using the input function. The "length" parameter is used to specify the number of data points that will be used to calculate the moving average. It is set to 20.25 by default, but can be changed to any other value between 1 and 2000 with increments of 0.25 using the input function.
The function starts by initializing two variables: "sum" and "sma". The "sum" variable is used to store the sum of the data points. It is set to "na" (not available) by default. The "sma" variable is used to store the calculated moving average. It is also set to "na" by default. The function then uses a conditional statement to check if the "length" parameter is a fractional value. If it is, the function uses the linear interpolation function from the imported "Interpolation" library to calculate the moving average. If it is not, the function calculates the moving average using the traditional method.
Finally, the script uses the "plot" function to display the calculated moving average on the chart. The "Interpolated SMA" indicator is then overlayed on the chart and can be used to analyze trends and make predictions about future market movements.