Tillson T3 Script, Added Long/Short Alerts

The Tillson T3 Alert indicator provides a smoothed moving average based on the T3 calculation method to identify trend direction and potential reversal points with integrated alert functionality.

Usage

The Tillson T3 Alert is primarily used to identify market trends while minimizing the lag often associated with traditional moving averages. The indicator plots a main T3 line on the chart which changes color based on its slope: green indicates an upward trend, while red indicates a downward trend.

Users can also enable an optional "T3 Fibonacci Ratio Line," which acts as a faster-reacting complementary trend line. This secondary line can be used to spot early momentum shifts or as a confirmation tool for the primary trend.

Details

The T3 calculation, originally developed by Tim Tillson, is a triple-smoothed exponential moving average. It utilizes a "Volume Factor" (s) to control how the moving average responds to price changes. By compounding multiple EMAs, the T3 provides a very smooth output that remains highly responsive to price action.

The formula involves six stages of exponential smoothing:

• e1 = EMA(src, length)
• e2 = EMA(e1, length)
• ...
• e6 = EMA(e5, length)

The final T3 value is a weighted calculation of these six EMAs using coefficients derived from the Volume Factor.

Settings

• Show T3 Fibonacci Ratio Line?: Toggles the visibility of a secondary T3 line calculated with different parameters (defaulting to Fibonacci-based values).
• T3 Length: Determines the lookback period for the primary T3 EMA calculations. Higher values result in smoother lines with more lag.
• Volume Factor: A multiplier (usually between 0 and 1) that controls the damping effect. A higher volume factor makes the T3 more responsive to price changes.
• T3 Length fibo: Determines the lookback period for the secondary Fibonacci T3 line.
• Volume Factor fibo: The volume factor specifically for the secondary Fibonacci T3 line.

FAQ

How do I use the alerts in this script?

You can set up alerts by clicking the alert icon in TradingView. The script includes predefined conditions for "Long Alert" (when the fast T3 turns bullish) and "Short Alert" (when the fast T3 turns bearish).

What is the difference between T3 and a regular EMA?

T3 uses multiple stages of smoothing combined with a volume factor, which allows it to follow price trends more closely with significantly less "overshoot" or lag than a standard EMA of the same length.

How can I access Tillson T3 Alert?

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