OPEN-SOURCE SCRIPT

Wavetrend Moving Average (WTMA) [Loxx]

Wavetrend Moving Average (WTMA) [Loxx] is a Wavetrend indicator morphed into a moving average. Use this indicator as you would any other moving average.

What is the Wavetrend indicator?
Wavetrend's original name was TCI created by the The Trading Center. The TCI (Trading Channel Index) displays the ratio between the average daily price and the smoothed averaged value of the average daily price.

You can read about TCI here: https://tradingcenter.org/index.php/train/tci/

How do you morph Wavetrend into a moving average?
1. Calculate Wavetrend
2. Normalize Wavetrend from a range of -1 to 1 to a range of 0 to 1
3. Find high/low values of X bars back of Wavetrend,
4. Subtract high from low to find the simple range of Wavetrend
5. Calculate upper and lower boundaries
6. Calculate the HL2 of using these new boundaries

Included:
  • Bar coloring
  • Signals
  • Alerts
  • Loxx's Expanded Source Types
Bands and ChannelsMoving AveragesTCIwavetrendWTMA

Open-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.

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