Moving Average Variable


Function Name: movv

Tags: Moving Averages

Category: Trend

The Moving Average Variable indicator is an exponential moving average that automatically adjusts the smoothing percentage based on the volatility of the data series. The more volatile the data, the more sensitive the smoothing constant used in the moving average calculation. As volatility ratio the VHF (Vertical Horizontal Filter) indicator is used. Sensitivity is increased by giving more weight to the current data.

Most moving average calculation methods are unable to compensate for trading range versus trending markets. During trading ranges (when prices move sideways in a narrow range) shorter term moving averages tend to produce numerous false signals. In trending markets (when prices move up or down over an extended period) longer term moving averages are slow to react to reversals in trend. By automatically adjusting the smoothing constant, a variable moving average is able to adjust its sensitivity, allowing it to perform better in both types of markets.





Default Value: 10  |  Minimum: 1  |  Maximum: 9999


Type: Numeric