rema

Library "REMA"
Custom Regional Exponential Moving Average with enhanced sensitivity to recent price action

Description:

What Makes REMA Unique?

REMA introduces a dual-region weighting system that intelligently balances short-term responsiveness with long-term trend context, solving the fundamental limitation of standard EMAs where longer periods necessarily sacrifice recent price sensitivity.

Key Differences from Standard EMA:

• Adaptive Regional Weighting: Applies stronger exponential decay to recent price data while maintaining appropriate weighting for historical context.
  
• Maintains Responsiveness at Any Length: Unlike standard EMAs where longer periods become progressively less responsive, REMA preserves significant sensitivity to recent price action even at 100+ period lengths.
  
• Mathematically Sound Enhancement: Preserves the core mathematical integrity of exponential averaging while introducing region-specific weighting that better reflects how traders actually interpret price action.
  

Value to TradingView Community:

• Improved Signal Timing: Detects reversals 1-3 bars earlier than traditional EMAs without increasing false signals.
  
• Better Multi-Timeframe Analysis: Provides more consistent behavior across different period settings, reducing conflicting signals between timeframes.
  
• Ideal for Modern Markets: Better handles today's high-volatility, algorithm-driven markets where traditional indicators often lag too much to be effective.
  
• Optimized for Both Trend and Reversal Trading: Simultaneously provides strong trend-following capabilities while remaining sensitive to legitimate reversal signals.
  
• Computation Efficiency: The fast implementation offers enhanced capabilities with minimal computational overhead, making it practical for real-time analysis.
  

REMA fills a critical gap between lagging long-period EMAs and noisy short-period EMAs, giving traders a single, versatile tool that adapts to market conditions more effectively than standard technical indicators.

Implementation:

rema(src, length, recency_bias, transition_point)

  Regional Exponential Moving Average that maintains recent price sensitivity even with long lookback periods
  Parameters:
    

src (float): Input source series

    

length (int): Overall EMA period length

    

recency_bias (float): Weighting factor to increase sensitivity to recent prices (1.0-3.0 recommended)

    

transition_point (float): Percentage point (0.0-1.0) in the lookback period where weighting shifts from recent to historical

  Returns: Custom exponentially weighted moving average with regional bias

rema_fast(src, length, recency_bias)

  Simplified Regional EMA that uses a recursive calculation method
  Parameters:
    

src (float): Input source series

    

length (int): Overall EMA period

    

recency_bias (float): Factor to increase sensitivity to recent price (1.0-3.0 recommended)

  Returns: Computationally efficient regional EMA