Adjustable MA & Alternating Extremities
By LuxAlgoMay 3, 2021
Adjustable MA & Alternating Extremities hands you the kernel controls other moving averages keep fixed. Two parameters steer the plot directly: Lag trades responsiveness for smoothness, while Overshoot amplifies the parametric sine-based kernel's negative weights so the average can lead rather than trail. Around it, the tool highlights alternating extremities that behave like the bands of an MA envelope — the upper one prints when the high exceeds it, the lower when the low breaks beneath — marking spots where price may snap back.
How to Trade the Adjustable MA & Alternating Extremities?
- Range rebounds: with a long average — say a 200 length with a multiplicative factor of 1 — extremity tags locate levels where ranging price tends to turn.
- Trend reads: in trending conditions closes sit beyond the extremity; watch for the band to catch up to price and act as support or resistance before a reversal.
- Crossover systems: dial Lag down for the fast leg and up for the slow leg — one indicator supplies both sides of the cross.
- As Smoothed Candles: render the MA as candles (open from the prior two MA values; high, low, and close each their own smoothed series) for a heikin-ashi-like read without forced continuity.
Adjustable MA & Alternating Extremities Settings
- Length: the MA period — how many recent data points feed the calculation.
- Mult: multiplicative factor applied to each extremity.
- Lag: adjusts the average's delay; higher values mean more lag and more smoothness.
- Overshoot: scales overshoot amplitude — higher values cut lag but exaggerate turns.
- As Smoothed Candles / Show Alternating Extremities: switch the two display modes.
Frequently Asked Questions
What is overshoot, and why would I want it?
Overshoot is a low-lag average running past a local maximum or minimum before settling. Raising it buys responsiveness; the trade-off is turns drawn larger than price actually made, so high overshoot pairs best with confirmation.
When would I use this over a standard moving average?
When the lag-smoothness balance matters more than the average type. If the classic builds serve you, the standard Moving Average covers them; this tool exists for tuning that balance by hand and for the extremity reversal marks.
How do I access the Adjustable MA & Alternating Extremities?
Free on the LuxAlgo Library. Load it from this page, or open it in Quant, LuxAlgo's AI, to watch how Lag and Overshoot reshape the kernel live.
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