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OPEN-SOURCE SCRIPT

predictive_moving_average

By palitoj_endthen
Updated

Description:
Originated by John F. Ehlers, could be found within (Rocket Science for Traders, pg. 212). Aim to provide a leading indicator (I assumed for the shorter time period), which smoothed the price with no lag. The indicator derives from 2 lines crossing i.e. a weighted moving average, of higher length as a predictor and shorter length as a trigger.

Predictive Moving Average:
predict = 2*wma1 - wma2
trigger = (4*predict+3*predict[1]+2*predict[2]+predict)/10

Feature:
  • Predictive moving average
  • Deviation band


Notes
  • Consider the support/resistance (dynamic) when entering the position
  • Some short direction change might be identified from deviation shrink
  • Green indicates to enter/long, while red indicates to close/short position
    Release Notes

    Predictive Moving Average:
    predict = 2*wma1 - wma2
    trigger = (4*predict+3*predict[1]+2*predict[2]+predict)/10
    Release Notes
    .
    Release Notes
    .
    Release Notes
    changed to overlay, with a slight adjustment in the color condition
    Release Notes
    update on additional options of band/envelope and bar-color

    example:
    snapshot
    Release Notes
    update on close alert
    ehlersMoving Averagespredictivepredictivemovingaverage

    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.

    Want to use this script on a chart?

    palitoj_endthen

    Disclaimer

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