Stratus [DW]This is an experimental study designed to identify trend activity, and potential support and resistance areas.
First, Coefficient of Variation Weighted Moving Average (COVWMA) is calculated, and its intersection points are used as anchor values.
Next, a fast period COVWMA calculated for a signal line.
For the cloud, its mid level is calculated first by taking the median of the range between price and the last anchor value.
The upper and lower cloud values are calculated by slicing the range in half two more times on each side. The result looks similar to stratus clouds, hence the name.
Finally, the result is offset by half of the specified period.
Custom bar colors are included.
