predictive_moving_average

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

changed to overlay, with a slight adjustment in the color condition

Release Notes

update on additional options of band/envelope and bar-color

example:

Release Notes

update on close alert

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.

For quick access on a chart, add this script to your favorites — learn more here.

palitoj_endthen

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

For quick access on a chart, add this script to your favorites — learn more here.

palitoj_endthen