Big thanks to alexgrover for his original Polynomial LSMA Estimation script. I liked the concept and thought about how to make it behave more like a moving average, with less overshoot. My idea is to use "sigma approximation" to tame the kernel. Hence the name of this script.
Higher "orders" will make the filter stick closer to the price. You might notice that with an order of 2 or 3, it behaves more like a traditional moving average, with reduced lag.
Note: This is my first publication. I didn't have enough reputation to post images with it.
Once again, much thanks to alexgrover and the TradingView community!
Wow what a great indicator for several reasons. 1. Grover is a genius I’ve gone though every single one of his indicators and found so many hidden mathematical gems that have yet to be utilized to create fantastic indicators such as this one. 2. I’m a big fan of Ehlers also and I feel using cycles in indicators gives you a superior edge in any trading system. I’m always happy to find indicators that will give me a bull signal on a bear candle or vice versa, most indicators just follow price and tell you when price is currently going up or down with not much more data. 3. I have found this indicator to give me signals just about exactly 1 bar earlier than the best Ehlers Indicators.
Some mod notes: 1. I added a 3 period wma (with an order of 2) to take out some of the false signals. This seems to work great and it still gives good early signals. 2. I found that using a lower order for the overall direction and a higher order for quicker re entry signals may work pretty well (still testing). 3. I love it when people use new trading view functions such as Arrays an Dynamic Length Arguments.
I’m pretty excited about seeing a new coder on the block creating quality stuff right out of the gate. Congratulations, I look forward to your future creations. I’m not a math expert at all but I’m pretty creative and enjoy combining indicators to make them even more useful. Let me know if you ever need any help with testing or thinking of ideas, I really appreciate your contribution to the community, when people discover you (with more time and more indicators), you’re going to get a lot of traction.
handsheik
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@stevenwalter0, Thank you for your kind words and contribution. Tinkering with indicators is a nice hobby to have. Also, I'm by no means an expert either, and thanks to this community I'm learning more everyday. My indi-kitchen remains open and I'll likely be publishing new "experiments" in the future, some better or worse than others. May the algorithms be on your side. Cheers. :)
alfredov1992
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This is one of the best indicator I have ever seen, amazing! Thanks
Matteovirgo
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With your settings is there a favourite time frame?
Matteovirgo
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Great work! How to have an alert when the line change colour? Please help
Some mod notes: 1. I added a 3 period wma (with an order of 2) to take out some of the false signals. This seems to work great and it still gives good early signals. 2. I found that using a lower order for the overall direction and a higher order for quicker re entry signals may work pretty well (still testing). 3. I love it when people use new trading view functions such as Arrays an Dynamic Length Arguments.
I’m pretty excited about seeing a new coder on the block creating quality stuff right out of the gate. Congratulations, I look forward to your future creations. I’m not a math expert at all but I’m pretty creative and enjoy combining indicators to make them even more useful. Let me know if you ever need any help with testing or thinking of ideas, I really appreciate your contribution to the community, when people discover you (with more time and more indicators), you’re going to get a lot of traction.