OPEN-SOURCE SCRIPT
Adaptive Centric Moving Average [LuxAlgo]
The Adaptive Centric Moving Average indicator provides a dynamic smoothing tool that adjusts its reactivity based on where the price sits relative to its recent trading range midpoint.
🔶 USAGE
The Adaptive Centric Moving Average (AMA) is designed to filter out noise during periods of consolidation while remaining highly responsive during trending moves. When the price is near the center of its recent high-low range, the indicator becomes flatter and less prone to "whipsaws." As price moves toward the extremes of its range, the indicator accelerates to catch the emerging trend.
Users can utilize the AMA for trend identification and trailing stop-loss levels. The visual gradient fill between the source price and the AMA line helps traders quickly identify the current trend strength and the distance between price and the smoothed average.
🔶 DETAILS
The core logic of the script relies on a normalized relative position (similar to a Stochastic calculation) to determine how far the price is from its range midpoint.
🔹 Adaptive Smoothing Logic
The indicator calculates a smoothing factor (alpha) based on the absolute distance from the 50% level of the range.
🔹 The Centric Calculation
Unlike standard moving averages that track the source price directly, this indicator centers its target around the range midpoint. The Attenuation Factor scales the distance between the source and the midpoint, while the Power Factor applies an exponent to the smoothing factor, allowing for non-linear reactivity.
🔶 SETTINGS
🔹 Price Settings
🔹 Adaptive Settings
🔹 Colors
🔶 USAGE
The Adaptive Centric Moving Average (AMA) is designed to filter out noise during periods of consolidation while remaining highly responsive during trending moves. When the price is near the center of its recent high-low range, the indicator becomes flatter and less prone to "whipsaws." As price moves toward the extremes of its range, the indicator accelerates to catch the emerging trend.
Users can utilize the AMA for trend identification and trailing stop-loss levels. The visual gradient fill between the source price and the AMA line helps traders quickly identify the current trend strength and the distance between price and the smoothed average.
🔶 DETAILS
The core logic of the script relies on a normalized relative position (similar to a Stochastic calculation) to determine how far the price is from its range midpoint.
🔹 Adaptive Smoothing Logic
The indicator calculates a smoothing factor (alpha) based on the absolute distance from the 50% level of the range.
- When price is at the midpoint (50%), the alpha is zero, causing the moving average to stay flat.
- As price moves toward the upper or lower boundaries (0% or 100%), the alpha increases, making the average more reactive.
🔹 The Centric Calculation
Unlike standard moving averages that track the source price directly, this indicator centers its target around the range midpoint. The Attenuation Factor scales the distance between the source and the midpoint, while the Power Factor applies an exponent to the smoothing factor, allowing for non-linear reactivity.
🔶 SETTINGS
🔹 Price Settings
- Source: The price series used for calculations (default is Close).
- Length: The window size used for pre-smoothing the source and determining the highest highs and lowest lows for the range.
🔹 Adaptive Settings
- Attenuation Factor: Controls the intensity of the price input relative to the midpoint. Lower values increase reactivity, while higher values provide a more stable, base smoothing speed.
- Power Factor: Exponents the smoothing factor. Higher values make the moving average significantly flatter when the price is near the range midpoint, requiring stronger moves to trigger a reaction.
🔹 Colors
- AMA Color: The color of the main Adaptive Centric Moving Average line.
- Bullish Fill: The color used for the gradient fill when the price is above the AMA.
- Bearish Fill: The color used for the gradient fill when the price is below the AMA.
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que cualquier republicación del código está sujeta a nuestras Normas internas.
All content & scripts provided by LuxAlgo are for educational purposes only and are not financial advice.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que cualquier republicación del código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.