AdaptiveEMA

Description

Adaptive EMA is a moving average-based indicator. It is essentially an exponential moving average (EMA) with a dynamic smoothing coefficient, which adapts to the relative position of the close price in the high-low range. The nearer the close price is to either limit, the greater weight the bar readings have.

Like other moving averages, Adaptive EMA is trend-following. Using it along with the regular EMA of the same length, may give insight into current trend direction. Using two adaptive EMAs with different lengths may give important crossover signals.

Input Parameters

Parameter Description
price Defines the price for which Adaptive EMA is to be calculated.
length Defines the period on which Adaptive EMA is to be calculated.
high low length Defines the period on which the high-low range is to be defined.

Plots

Plot Description
AEMA The Adaptive EMA plot.

Further Reading

1. "Adaptive Exponential Moving Average" by Vitali Apirine. Technical Analysis of Stocks & Commodities, April 2019.

Example*

*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.

You may also like
MomentumPercentDiff
The Momentum Percent Diff is a momentum-based technical indicator. Unlike the regular Momentum ...
Tick Counter
Tick Counter is a feature available for charts using Tick aggregation. This feature shows ...
SlowRSI
The Slow Relative Strength Index is a version of the classic Relative Strength Index (RSI), ...