Step-OMA with Signals

The Step-OMA with Signals is a sophisticated trend-following indicator that combines Loxx's Optimized Moving Average (OMA) algorithm with an advanced step function to create a highly responsive yet smooth trend detection system. This indicator excels at identifying trend changes early while minimizing false signals through its adaptive filtering mechanism.

Core Algorithm Components
1. Optimized Moving Average (OMA) Foundation

Based on Loxx's advanced OMA implementation
Uses a 6-stage exponential smoothing process
Incorporates adaptive period calculation based on market noise
Employs Jurik-style smoothing techniques for superior signal quality

2. Step Function Integration

Implements a step-based trend detection mechanism
Uses ATR-based dynamic threshold calculation
Maintains trend consistency through threshold memory
Provides clear trend change identification

3. Adaptive Noise Filtering

Automatically adjusts to market volatility
Calculates optimal averaging periods based on price noise
Reduces false signals in choppy market conditions

Speed (Default: 3.0, Range: -1.5 to unlimited)
This is the most critical parameter affecting indicator behavior:
Positive Speed Values (0 to 10.0+):
Creates faster, more responsive signals
Higher values increase sensitivity to recent price action

Negative Speed Values (-1.5 to -0.1):
Produces smoother, more conservative signals
Reduces noise and false breakouts
Creates delayed but more reliable trend confirmations

Adaptive (Default: True)

When enabled: Automatically adjusts averaging period based on market noise
When disabled: Uses fixed length parameter
Recommendation: Keep enabled for most market conditions

Sensitivity Factor (Default: 3.0)

Controls the threshold distance for trend change detection
Lower values: More frequent signals, higher sensitivity
Higher values: Fewer but more reliable signals
Optimal range: 2.0-5.0 depending on market volatility

Step Size Period (Default: 50)

Determines the ATR calculation period for dynamic thresholds
Affects the indicator's adaptation to volatility changes
Lower values: More reactive to recent volatility
Higher values: More stable threshold calculation

For a trading application, Step-OMA is a suitable base filter to complement other types of signaling indicators (oscillators, momentum indicators).


Disclaimer: This indicator is a technical analysis tool and should be used in conjunction with proper risk management and comprehensive market analysis. Past performance does not guarantee future results.