Weighted Moving Range with Trend Signals (WMR-TS)

The Weighted Moving Range with Trend Signals (WMR-TS) indicator identifies key trading levels and trend reversal points by combining weighted moving averages with dynamic range calculations.

Usage

The Weighted Moving Range with Trend Signals (WMR-TS) is designed to help traders visualize market structure through support and resistance zones. The script identifies potential entry points using two primary signals:

• Rocket Signal: A green circle appearing below the price bar, suggesting a potential buy opportunity when the price crosses over the Buy Level.
• Hammer Signal: A red circle appearing above the price bar, suggesting a potential sell opportunity when the price crosses under the Sell Level.

Traders can use the color-coded zones to identify market sentiment:

• Long Area: The lower highlighted zone indicates potential buying interest near the bottom of the range.
• Short Area: The upper highlighted zone indicates potential selling pressure near the top of the range.
• Wave Level: The blue midpoint line acts as a central trend gauge. Trading above this line suggests a bullish bias, while trading below suggests a bearish bias.

Details

The script utilizes a series of Weighted Moving Averages (WMA) to smooth price data while prioritizing recent activity. It calculates a "primary WMA" by factoring in the difference between high-period and low-period averages, creating a more responsive trend baseline.

This baseline is then combined with the highest highs and lowest lows over a specific lookback period to establish dynamic boundaries. By incorporating Fibonacci-derived ratios (such as 0.382 and 0.786), the indicator plots multiple layers of support and resistance that adapt to market volatility. These levels include the Top Level, Resistance, Support, and Bottom Level, providing a comprehensive map of the current trading range.

Settings

• WMA Length: The period used for the primary weighted moving average calculation.
• Highest High Length: The lookback period used to determine the peak price level for resistance calculations.
• Lowest Low Length: The lookback period used to determine the trough price level for support calculations.
• Range Corrector: A fine-tuning multiplier (-1 to 1) that expands or contracts the overall width of the calculated range.
• Top Level: A multiplier that adjusts the distance of the uppermost boundary from the core resistance.
• Bottom Level: A multiplier that adjusts the distance of the lowermost boundary from the core support.
• Levels Visibility: Controls the historical lookback for how many bars the levels remain visible on the chart.

FAQ

How do I use the Hammer and Rocket signals?

The Rocket signal (buy) triggers when the price crosses above the internal buy level, while the Hammer signal (sell) triggers when the price crosses below the internal sell level. These are best used when the price is near the outer boundaries of the range.

Can I adjust the sensitivity of the trend?

Yes, by modifying the WMA Length and the High/Low Length inputs. Shorter lengths make the indicator more responsive to recent price changes, while longer lengths provide a smoother, more filtered view of the trend.

How do I access Weighted Moving Range with Trend Signals (WMR-TS)?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.