People often ask me what is my best indicators, i can't really respond to this question with a straight answer but i would say you to check this indicator. The Autonomous Recursive Moving Average (ARMA) is an adaptive moving average that try to minimize the sum of squares thanks to a ternary operator, this choice can seem surprising since most of the adaptive moving averages adapt to a smoothing variable thanks to exponential averaging, but there are lot of downsides to this method, i really wanted to have a flat filter during flat markets and this is what i achieved.
The Indicator
length control the amount of smoothing during trending periods, gamma is the trend sensitivity threshold, higher values of gamma will make an overall flat filter, adjust gamma to skip ranging markets.
gamma = 2, we can adjust to 3 while preserving smoothing reactivity with trading periods.
gamma = 3
low length and higher gamma create more boxy result, the filter add overshoots directly in the output, its unfortunate.
The Zero-Lag option can reduce the lag as well as getting additional flat results without changing gamma.
Conclusion
The indicator need work, but i can't leave without publishing it, the overshoots are a big problems, changing sma for another stable filter can help. I hope you find an use to it, i really like this indicator.
Hello, I think this indicator is amazing. For now , when we dont have many trends on market, this indicator is the core of all of my scalpers . Thank you for make it open-source <3
Thank you Alexgrover. I agree that there is no perfect indicator. I hope you will enjoy watching your script in the future. Am I asking for too much?
ICEKI
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I 100% agreed that Alexgrover you pointed out. In my thoughts there are no kinds of BEST indicators. An indicators is just an indicators; Trading with detailed plans with right indicators is the BEST. Appreciated Alex you posted us a lot of indicators of us =D
cooney_s
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Thanks for sharing Alex! I find that when I mark up the "peaks" and "valleys" of the plots that we get some very interesting Support and Resistance levels. When combined with some MTF Vidya plotting we can see the flat markets versus the MTF trends. I used a 15m chart on SPX500USD: ARMA with input of 96 (one day) and then "MTF" Vidya's of 96 (1D), 192(2D), 288(3D) and 480(5D). Cool stuff.
Thank you for make it open-source <3