HPotter

T3 3 Averages

This function is an Pine version of the moving average described in
the January, 1998 issue of S&C magazine, p.57, "Smoothing Techniques
for More Accurate Signals", by Tim Tillson. It is translated from the
MetaStock code presented in the article. The function uses a version
of the XAverage, written by me, which allows variables as inputs.

The most popular method of interpreting a moving average is to compare
the relationship between a moving average of the security's price with
the security's price itself (or between several moving averages).

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 a publication is governed by House Rules. You can favorite it to use it on a chart.

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.

Want to use this script on a chart?
////////////////////////////////////////////////////////////
//  Copyright by HPotter v1.0 21/05/2014
// This function is an Pine version of the moving average described in
// the January, 1998 issue of S&C magazine, p.57, "Smoothing Techniques
// for More Accurate Signals", by Tim Tillson. It is translated from the
// MetaStock code presented in the article. The function uses a version
// of the XAverage, written by me, which allows variables as inputs.
// The most popular method of interpreting a moving average is to compare
// the relationship between a moving average of the security's price with
// the security's price itself (or between several moving averages).
////////////////////////////////////////////////////////////
study(title="T3 3 Averages", shorttitle="T3")
Length = input(5, minval=1)
hline(0, color=gray, linestyle=line)
xPrice = close
xe1 = ema(xPrice, Length)
xe2 = ema(xe1, Length)
xe3 = ema(xe2, Length)
xe4 = ema(xe3, Length)
xe5 = ema(xe4, Length)
xe6 = ema(xe5, Length)
b = 0.7
c1 = -b*b*b
c2 = 3*b*b+3*b*b*b
c3 = -6*b*b-3*b-3*b*b*b
c4 = 1+3*b+b*b*b+3*b*b
nT3Average = c1 * xe6 + c2 * xe5 + c3 * xe4 + c4 * xe3
nSlope = nT3Average - nT3Average[2]
Res1 = nSlope
Res2 = nSlope[1]
Res3 = nT3Average - nT3Average[1]
plot(iff(Res2 > 10 or Res3 > 10,na, Res1), color=blue, title="Slope")
plot(iff(Res2 > 10 or Res3 > 10,na, Res2), color=red, title="Slope2")
plot(iff(Res2 > 10 or Res3 > 10,na, Res3), color=green, title="Slope1per")

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