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[blackcat] L1 Tim Tillson T3
Level: 1
Background
T3 Moving Average is the responsive form of traditional moving averages. Presented in 1998 by Tim Tillson, T3 is also known as the Tillson Moving Averages. The thought behind the development of this technical indicator was to improve lag and false signals, which can be present in moving averages.
Function
The T3 indicator performs better than the ordinary moving averages. The reason for this is T3 Moving Average is built with the EMA (exponential moving average).
Its calculation is based on the sum of single EMA, double EMA, Triple EMA, and so on.
This gives the following equation:
T3 = c1*e6 + c2*e5 + c3*e4 + c4*e3…
Where
e3 = EMA (e2, Period)
e4 = EMA (e3, Period)
e5 = EMA (e4, Period)
e6 = EMA (e5, Period)
a is the volume factor, with a default value of 0.7 but you can also use 0.618
c1 = a^3
c2 = 3*a^2 + 3*a^3
c3 =6*a^2 – 3*a – 3*a^3
c4 = 1 + 3*a + a^3 + 3*a^2
When a trend appears, the price action stays above or below the trend line and doesn’t get disturbed from the price swing. The moving of the T3 and the lack of reversals can indicate the end of the trend. The T3 Moving Average produces signals just like moving averages, and similar trading conditions can be applied. If the price is above the T3 Moving Average and the indicator moves upward, this is a sign of a bullish trend. Here we may look to enter long. Conversely, if the price action is below the T3 Moving Average and the indicator moves downwards, a bearish trend appears. Here we may want to look for a short entry.
Key Signal
Price --> Price Input.
T3 --> T3 Ouput.
Remarks
This is a Level 1 free and open source indicator.
Feedbacks are appreciated.
Background
T3 Moving Average is the responsive form of traditional moving averages. Presented in 1998 by Tim Tillson, T3 is also known as the Tillson Moving Averages. The thought behind the development of this technical indicator was to improve lag and false signals, which can be present in moving averages.
Function
The T3 indicator performs better than the ordinary moving averages. The reason for this is T3 Moving Average is built with the EMA (exponential moving average).
Its calculation is based on the sum of single EMA, double EMA, Triple EMA, and so on.
This gives the following equation:
T3 = c1*e6 + c2*e5 + c3*e4 + c4*e3…
Where
e3 = EMA (e2, Period)
e4 = EMA (e3, Period)
e5 = EMA (e4, Period)
e6 = EMA (e5, Period)
a is the volume factor, with a default value of 0.7 but you can also use 0.618
c1 = a^3
c2 = 3*a^2 + 3*a^3
c3 =6*a^2 – 3*a – 3*a^3
c4 = 1 + 3*a + a^3 + 3*a^2
When a trend appears, the price action stays above or below the trend line and doesn’t get disturbed from the price swing. The moving of the T3 and the lack of reversals can indicate the end of the trend. The T3 Moving Average produces signals just like moving averages, and similar trading conditions can be applied. If the price is above the T3 Moving Average and the indicator moves upward, this is a sign of a bullish trend. Here we may look to enter long. Conversely, if the price action is below the T3 Moving Average and the indicator moves downwards, a bearish trend appears. Here we may want to look for a short entry.
Key Signal
Price --> Price Input.
T3 --> T3 Ouput.
Remarks
This is a Level 1 free and open source indicator.
Feedbacks are appreciated.
Notas de Lançamento
OVERVIEWThe L1 Tim Tillson T3 indicator is a comprehensive trading tool that combines the T3 Moving Average with advanced divergence detection capabilities. This script provides visual signals for potential trend reversals through both regular and hidden divergences, making it valuable for traders seeking to identify market turning points.
FEATURES
• T3 Indicator: Calculates a smoothed moving average using the Tim Tillson T3 algorithm
• Divergence Detection: Identifies both regular and hidden bullish/bearish divergences
• Visual Alerts: Displays clear BUY/SELL signals with colored labels
• Customizable Parameters: Allows adjustment of key settings like period length and lookback ranges
HOW TO USE
Setup:
Select your preferred price source (default: Close)
Adjust T3 Period and vFactor parameters as needed
Configure divergence detection parameters
Interpretation:
Look for BUY signals when price crosses above the T3 line
Watch for SELL signals when price crosses below the T3 line
Monitor divergence indicators for potential trend reversals
Alerts:
Enable alert conditions for automatic notifications
Customize alert messages as desired
PARAMETERS
Price Source: Choose which price data to analyze
T3 Period: Controls the sensitivity of the T3 indicator
vFactor: Affects the smoothing of the T3 calculation
Pivot Lookback: Defines the range for detecting divergences
LIMITATIONS
• Divergence detection may produce false signals during choppy markets
• Best suited for trending markets rather than ranging conditions
• Results may vary across different timeframes and instruments
NOTES
The indicator uses the Tim Tillson T3 algorithm for more responsive trend following
Divergence detection includes both regular and hidden patterns
Alert conditions can be customized for specific trading strategies
Notas de Lançamento
█ OVERVIEWThis indicator turns Tim Tillson's T3 moving average into a complete trading system: governed long/short entry and exit signals, ATR-based stop-loss and take-profit reference levels, a live status dashboard, and four kinds of divergence detection drawn directly on the T3 line. Signals are edge-triggered, state-aware and cooldown-protected, so the chart shows clean, non-repeating marks instead of constant cross noise.
█ CONCEPTS
The script is built on three layers:
• T3 Trend Line — Tim Tillson's triple-smoothed, volume-factor weighted moving average. Price crossing this line defines trend turns.
• Signal Governance — a position state machine decides every signal: entries fire only when the current position allows it, a configurable cooldown suppresses whipsaw chains, and same-bar entry/exit conflicts are resolved with exit-first priority.
• Divergence Engine — regular and hidden divergences are detected between price pivots and pivots of the T3 line itself.
█ HOW TO USE
1 — Add the indicator to any chart. Defaults (T3 Period 6, vFactor 0.7) follow the classic Tillson settings.
2 — Read entries: green "E" label below the bar = long entry, red "S" above the bar = short entry. Orange "XL" / "XS" crosses mark exits.
3 — Use the Stop Loss / Take Profit lines (red / teal) as structured risk references for each open position.
4 — Watch divergence segments (thick colored bars with "Bull" / "Bear" labels) as potential exhaustion warnings.
Input Parameters
• T3 Core: Price Source, T3 Period (6), T3 vFactor (0.7)
• Signal Governance: Enable Short Signals, Same-bar Entry/Exit Exclusivity, Cooldown Bars (3, 0 = off)
• Risk: Show TP/SL Levels, ATR Length (14), Stop Loss xATR (2.0), Take Profit xATR (3.0)
• Divergence: Pivot Lookback Left / Right (5 / 5), Min / Max Lookback Range (5 / 60), Plot Bullish / Hidden Bullish / Bearish / Hidden Bearish toggles
• Visual: Show Signal Labels, Show Position Background, Show Dashboard
█ FEATURES
• 8 alert conditions: Long Entry, Short Entry, Long Exit, Short Exit, plus four divergence alerts
• Live dashboard: position state, entry price, ATR, current SL / TP values
• Position background tint: green = long, red = short
• Fill between price and T3 flips color with trend direction
█ SIGNALS
• E (green, below bar) — long entry
• S (red, above bar) — short entry
• XL / XS (orange cross) — long / short exit
• Bull / H Bull (green) — regular / hidden bullish divergence
• Bear / H Bear (red) — regular / hidden bearish divergence
• Background tint — current governed position state
█ IMPLEMENTATION NOTES
Open source, Pine v6. Built on ta.ema (T3), ta.crossover / ta.crossunder (entries), ta.atr (risk levels), and ta.pivotlow / ta.pivothigh with ta.valuewhen and ta.barssince (divergence). Pivot detection runs unconditionally on every bar to keep historical state consistent. Divergence markers are drawn at the pivot bar (negative offset) and become final only after the right lookback confirms the pivot — treat recent divergence alerts as provisional until that confirmation window passes.
█ LIMITATIONS
• Trend-cross systems whipsaw in ranges — raise Cooldown Bars or wait for divergence confluence
• With Exclusivity on (default), a reverse cross closes the position but does not flip it; the opposite entry needs a new cross. Turn the switch off for flip-on-cross behavior
• TP / SL are reference levels, not orders — this is an indicator, not an auto-trading strategy
• Divergence detection needs sufficient chart history (lookback range)
█ NOTES
• T3 concept by Tim Tillson; divergence framework follows the classic multi-indicator divergence idea
• Mozilla Public License 2.0 — free to use and modify, attribution appreciated
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For questions or feedback, use the comments section below.
Don't miss out! The first and most important thing to do is to join my Discord chat now! Click here to start your adventure: discord.com/invite/ZTGpQJq My new github for more pine development soon: github.com/wxt-coder
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.
Don't miss out! The first and most important thing to do is to join my Discord chat now! Click here to start your adventure: discord.com/invite/ZTGpQJq My new github for more pine development soon: github.com/wxt-coder
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.