I would like to share a great moving average with you.
It is in default in Metastock professional. It is a moving average that takes the ellement volatility in its calculations.
My professional trading is based on that MA. The formula that one needs in metastock to re-build this indicator wich is normally a canned indicator is the following...
Length:=Input("Length",1,200,9);
Smooth:=Input("Smoothing",1,200,2);
AbsCMO:=(Abs(CMO(C,Length)))/100;
SC:=2/(Smooth+1);
VARMA:=If(Cum(1)<=(Smooth+2),C,(SC*AbsCMO*C)+(1-(SC*AbsCMO))*PREV);
If(Sum(C,Smooth+2)>0,VARMA,VARMA);
VARMA

the canned indicator works normally but if one whants to re-build this indicator it works a lott slower because of the previous function that is in the indicator.
If one looks on the internet for the matematical formula of the variable moving average then you get this
VMA = (0.78*(volatility index) * close) + (1-0.078 * volatility index)*yesterday’s VMA

The absolute value of a 9-period Chande Momentum Oscillator is used for the volatility index. The higher this index the more volatile the market, thereby increasing the sensitivity of the moving average.

This formula looks a lott simpler than the one for metastock but I don't know if it does the same job like it would do in metastock.

Is it possible to build this variable moving average for the MT4.0 platform.

TNX a lott in advance and hopefully we can all benifit from this MA.

friendly greetings...iGoR

iGoR

This is the AMA a variable moving average designed by Perry Kaufman. As described in his book Smarter Trading. It changes speed from a 3 period EMA to 400+ period EMA. based on the squaring of the ER calculation. Ive only looked at the code but it appears to be correct as described in Perrys book.

Attached Files

AMA & AMA sig.mq4 (3.3 KB, 286 views)

Hy CC,

Long time no see...
Strange but I had this indicator for some time but never realy looked into it.
I tweakend the settings and indeed I get the same shape of MA as with the VAR MA in metastock.
TNX very much for pointing this out to me.

iGoR

Hy CC,

In this indicator it is not possible to add levels to this MA like with the default MA. Would it be possible that you could add this to this indicator so one can add levels in pips to this var MA.

TNX very much in advance..iGoR

Hi CC,

If this would be to much work then you don't have to do this because I solved it by placing an ema 1 with levels on top of the variable MA.

iGoR

Hi,

I'm also looking for the variable moving average for MT4.
How did you tweek this indicator to be the same as the VMA?
What settings should I use?

Thanks