OPEN-SOURCE SCRIPT
Keltner Channel With User Selectable Moving Avg
Updated
Keltner Channel with user options to calculate the moving average basis and envelopes from a variety of different moving averages.
The user selects their choice of moving average, and the envelopes automatically adjust. The user may select a MA that reacts faster to volatility or slower/smoother.
Added additional options to color the envelopes or basis based on the current trend and alternate candle colors for envelope touches. The script has a rainbow gradient by default based on RSI.
Options (generally from slower/smoother to faster/more responsive to volatility):
Value Added:
Allows Keltner Channel to be calculated from a variety of moving averages other than EMA/SMA, including ones that are well liked by traders such as Tillson T3, ALMA, Hull MA, and TEMA.
Glossary:
The user selects their choice of moving average, and the envelopes automatically adjust. The user may select a MA that reacts faster to volatility or slower/smoother.
Added additional options to color the envelopes or basis based on the current trend and alternate candle colors for envelope touches. The script has a rainbow gradient by default based on RSI.
Options (generally from slower/smoother to faster/more responsive to volatility):
- SMMA,
- SMA,
- Donchian, (Note: Selecting Donchian will just convert this indicator to a regular Donchian Channel)
- Tillson T3,
- EMA,
- VWMA,
- WMA,
- EHMA,
- ALMA,
- LSMA,
- HMA,
- TEMA
Value Added:
Allows Keltner Channel to be calculated from a variety of moving averages other than EMA/SMA, including ones that are well liked by traders such as Tillson T3, ALMA, Hull MA, and TEMA.
Glossary:
- The Hull Moving Average ( HMA ), developed by Alan Hull, is an extremely fast and smooth moving average . In fact, the HMA almost eliminates lag altogether and manages to improve smoothing at the same time.
- The Exponential Hull Moving Average is similar to the standard Hull MA, but with superior smoothing. The standard Hull Moving Average is derived from the weighted moving average ( WMA ). As other moving average built from weighted moving averages it has a tendency to exaggerate price movement.
- Weighted Moving Average: A Weighted Moving Average ( WMA ) is similar to the simple moving average ( SMA ), except the WMA adds significance to more recent data points.
- Arnaud Legoux Moving Average: ALMA removes small price fluctuations and enhances the trend by applying a moving average twice, once from left to right, and once from right to left. At the end of this process the phase shift (price lag) commonly associated with moving averages is significantly reduced. Zero-phase digital filtering reduces noise in the signal. Conventional filtering reduces noise in the signal, but adds a delay.
- Least Squares: Based on sum of least squares method to find a straight line that best fits data for the selected period. The end point of the line is plotted and the process is repeated on each succeeding period.
- Triple EMA (TEMA) : The triple exponential moving average (TEMA) was designed to smooth price fluctuations, thereby making it easier to identify trends without the lag associated with traditional moving averages (MA). It does this by taking multiple exponential moving averages (EMA) of the original EMA and subtracting out some of the lag.
- Running (SMoothed) Moving Average: A Modified Moving Average (MMA) (otherwise known as the Running Moving Average (RMA), or SMoothed Moving Average (SMMA)) is an indicator that shows the average value of a security's price over a period of time. It works very similar to the Exponential Moving Average, they are equivalent but for different periods (e.g., the MMA value for a 14-day period will be the same as EMA-value for a 27-days period).
- Volume-Weighted Moving Average: The Volume-weighted Moving Average (VWMA) emphasizes volume by weighing prices based on the amount of trading activity in a given period of time. Users can set the length, the source and an offset. Prices with heavy trading activity get more weight than prices with light trading activity.
- Tillson T3: The Tillson moving average a.k.a. the Tillson T3 indicator is one of the smoothest moving averages and is both composite and adaptive.
Release Notes
altered default rainbow envelope display & preview imageRelease Notes
set "not enough data" color = grayRelease Notes
extended gradient colors to 101 elements, from weak to strong: fuchsia-red-yellow-green-aquaRelease Notes
Modified RSI gradient color scheme for the major color changes to be more consistent with 30-50-70 RSI values that most people useOpen-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
Disclaimer
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