Description
The Rainbow Moving Average study is a weight-based smoothing analysis technique; its main purpose is to give more weight to the less smoothed data. Ten averages of the same type are calculated, each being an average of the previous one. Once the averages are calculated, the first four have respective weights of 5,4,3, and 2 while all the others have the weight of 1.
Input Parameters
| Parameter | Description |
|---|---|
price
|
The price with which the Rainbow Moving Average is calculated. |
length
|
Defines period on which each of the ten averages is calculated. |
average type
|
Defines type of average to be used in calculations: Simple, Exponential, Weighted, Wilders, or Hull. |
Plots
| Plot | Description |
|---|---|
Rainbow
|
The Rainbow Moving Average. |
Example*
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.