Multi Deviation Scaled Moving Average [ChartPrime]

29 Jul

Multi Deviation Scaled Moving Average ChartPrime


⯁ OVERVIEW
The Multi Deviation Scaled Moving Average is an analysis tool that combines multiple Deviation Scaled Moving Averages (DSMAs) to provide a comprehensive view of market trends. The DSMA, originally created by John Ehlers, is a sophisticated moving average that adapts to market volatility. This indicator offers a unique approach to trend analysis by utilizing a series of DSMAs with different periods and presenting the results through a color-coded line and a visual histogram.


◆ KEY FEATURES

• Multiple DSMA Calculation: Computes eight DSMAs with incrementally increasing periods for multi-faceted trend analysis.
  
• Trend Strength Visualization: Provides a color-coded moving average line indicating trend strength and direction.
  
• Trend Percentage Histogram: Displays a visual representation of bullish vs bearish trend percentages.
  
• Signal Generation: Identifies potential entry and exit points based on trend strength crossovers.
  
• Customizable Parameters: Allows users to adjust the base period and sensitivity of the indicator.
  

◆ USAGE

• Trend Direction and Strength: The color and intensity of the main indicator line provide quick insights into the current trend.
  
• Trend Percentage Histogram: The histogram value can give you an idea of ​​the market trend ahead
• Entry and Exit Signals: Diamond-shaped markers indicate potential trade entry and exit points based on trend strength shifts.
  
• Trend Bias Assessment: The trend percentage histogram offers a visual representation of the overall market bias.
  
• Multi-Timeframe Analysis: By applying the indicator to different timeframes, traders can gain insights into trends across various time horizons.
  

⯁ USER INPUTS

• Period: Sets the initial calculation period for the DSMAs (default: 30).
  
• Sensitivity: Adjusts the step size between DSMA periods. Lower values increase sensitivity (default: 60, range: 0-100).
  
• Source: Uses HLC3 (High, Low, Close average) as the default price source.
  

The Multi Deviation Scaled Moving Average [ChartPrime] indicator offers traders a sophisticated tool for trend analysis and signal generation. By combining multiple DSMAs and providing clear visual cues, it enables traders to make more informed decisions about market direction and potential entry or exit points. The indicator's customizable parameters allow for fine-tuning to suit various trading styles and market conditions.