As the first in a series of weighted moving averages I propose I present to you the ADX Weighted Moving Average .
The ADX Weighted Moving Average (ADXwma) calculates the average price over a certain period, contrary to the well known Volume weighted ma, it is weighted by the ADX value, the ADX value gives an indication of the "strength" of the market.
In this indicator the ADX is factored in to calculate the ma behaviour, meaning the stronger the market, the more price is factored in, while price moves with a weak market are not as impactfull.
Feel free to experiment!!!
If you use the ADXwma in your scripts or your work, a shoutout would be nice!!
You mean the indicator works good in only bullish markets?
Duyck
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@realcr7naldo, hi, no what I say is that the indicator follows price closely in bullish or bearish moves and stays flat during ranging periods.
Gr, JD.
realcr7naldo
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@Duyck, thank you so much. It is same for every time frame right?
Duyck
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@realcr7naldo, Jup, price movement is quite fractal, if you remove the timeframe notation from a chart, it's near impossible to determine what timeframe you are on!
kiran-posani
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hi,why dont u make it multi time frame like giving ranks to ADX strenghth in different time frames and adding it to weighted moving avaerage.EX-4hrs ADX at 20-25 rank _0 and 4hrs adx above 25-40 rank+1,below 25-10 rank _1 like that for 4 time frames and giving most weight to the lower time frames.when we use such weighted average at lower time frames it gives excelent indication as to where we are from the current trend.please consider to think about it and u r work is a good try cheers....
Duyck
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@kiran-posani, Hi, I could do that, but it would actually be a totally different concept of indicator.
Thanks for the tip, I'll see if I can give that a shot when I find some time.