Description
The True Range-Adjusted EMA is an EMA-based technical indicator created by Vitali Apirine. Its calculation is similar to that of the original EMA, however, the multiplier used in the formula is adjusted for true range.
In TrueRangeAdjEMA, the smoothing coefficient is calculated using the following formula:
where:
Multiplier: A user-defined multiplier.TR: The current true range.TRmin: The minimum true range value, as found on the user-defined lookup period.TRmax: The maximum true range value, as found on the user-defined lookup period.
Input Parameters
| Parameter | Description |
|---|---|
price
|
The type of price used in the calculation of TrueRangeAdjEMA. |
length
|
The length of the period for which TrueRangeAdjEMA is calculated. |
high low length
|
The length of the period for which the maximum and the minimum values of true range are found. |
multiplier
|
The multiplier used in the calculation of the smoothing coefficient. |
Plots
| Plot | Description |
|---|---|
TRAdjEMA
|
The True Range-Adjusted EMA plot. |
Further Reading
1. "True Range Adjusted Exponential Moving Average (TRAdjEMA)" by Vitali Apirine. Technical Analysis of Stocks & Commodities, January 2023.
Example*
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.
Past performance is no guarantee of future performance.