Moving Average Filters Add-on w/ Expanded Source Types

The Moving Average Filters Add-on w/ Expanded Source Types indicator is a comprehensive toolkit featuring 39 specialized and traditional moving averages alongside expanded source types like better Heikin Ashi candles. It serves as a high-precision reference for trend identification and noise reduction across various market conditions.

Usage

The Usage section allows traders to select from a vast library of smoothing algorithms to fit specific strategies. Users can choose traditional price inputs or utilize the "Better Heikin Ashi" source types to further filter volatility.

• Standard Moving Averages: Includes foundational tools like the SMA, EMA, and WMA for general trend following.
• Zero-Lag and Low-Lag Filters: Options like the DEMA, Zero-Lag TEMA, and Leader EMA are designed for scalping and fast-paced trading where minimizing delay is critical.
• Adaptive Filters: Scripts like the FRAMA (Fractal Adaptive) and KAMA (Kaufman) automatically adjust their sensitivity based on market volatility or fractal dimension.
• Advanced Smoothing: Algorithms such as the Ehlers Butterworth filters, Laguerre Filter, and Super Smoother provide superior noise reduction for medium-to-long-term trend analysis.

Details

The indicator incorporates specialized calculations gleaned from TASC publications and advanced quantitative research. Notable inclusions are the "Better Heikin Ashi" candles, which use a modified formula—(Open+Close)/2+(((Close-Open)/(High-Low))*ABS((Close-Open)/2))—to provide a more accurate representation of price action than traditional Heikin Ashi methods.

The tool also features expanded source types, including "Trend Biased" and "Trend Biased (Extreme)," which adjust the input data based on directional momentum before the moving average is applied. This allows the filters to react differently during bullish versus bearish regimes.

Settings

Basic Settings

• SMA Source Options: Determines the input data used for the calculation (e.g., Close, Open, Heikin Ashi variants, or Trend Biased sources).
• Filter Options: Selects the primary smoothing method (AMA, T3, or Kaufman).
• Period: Sets the look-back length for the chosen moving average.
• Moving Average Type: Selects one of the 39 available moving average algorithms.

Moving Average Inputs

• Fractal Adjusted (FRAMA) FC/SC: Controls the fast and slow constants for the FRAMA calculation.
• Instantaneous Trendline Alpha: Adjusts the smoothing factor for the Ehlers Instantaneous Trendline.
• Laguerre Filter Alpha: Determines the damping factor for Laguerre polynomials.
• Least Squares Moving Average Offset: Shifts the LSMA plot forward or backward in time.
• Parabolic Weighted Moving Average Power: Sets the power parameter to define the curve of the PWMA weighting.
• Kaufman's Adaptive MA Fast/Slow End: Defines the boundaries for the KAMA efficiency ratio.

UI Options

• Color bars?: Toggles price bar coloring based on the moving average trend.
• Show Signal Line?: Displays an additional trigger line for crossover analysis.

FAQ

How do I access this tool on my chart? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

What is the difference between "Traditional" and "Better" Heikin Ashi? Traditional Heikin Ashi uses a four-point average of OHLC data, while the "Better" version uses a weighted formula proposed by Sebastian Schmidt to reduce lag and improve smoothing.

Which moving average is best for scalping? Zero-lag variants like the Zero-Lag TEMA or the Leader EMA are generally preferred for scalping as they prioritize speed and immediate reaction to price changes over extreme smoothness.