Update: WordPress chopped a line out of the code. It has since been fixed.
I was messing around with some moving average stuff and threw this one together to see what it looked like. It’s pretty simple: 1 = buy, -1 = sell, 0 = neutral. You can experiment with the filter percentage and period to suit your taste. I’ll probably incorporate this into other scripts as a filter.
Kaufman's Adaptive Moving Average Binary Wave
# KAUFMANBINARYWAVE # http://www.thinkscripter.com # thinkscripter@gmail.com # Last Update 27 Feb 2009 declare lower; input price = close; input period = 20; input filterPercent = 10; def diff = AbsValue(price - price[1]); def signal = AbsValue(price - price[period]); def noise = sum(diff, period); def efRatio = signal / noise; def fastSC = 0.6022; def slowSC = 0.0645; def smooth = Power(efratio * fastSC + slowSC, 2); rec ama = compoundValue(period, "visible data" = ama[1] + smooth * (price - ama[1]), "historical data" = price ); def filter = filterPercent/100 * stdev(ama - ama[1], period); rec amaLow = if(ama < ama[1], ama, amaLow[1]); rec amaHigh = if(ama > ama[1], ama, amaHigh[1]); plot BinaryWave = if ama - amalow > filter then 1 else if amaHigh - ama > filter then -1 else 0; BinaryWave.setDefaultColor(color.red);
Great looking indicator. I copied and pasted the script, but I am getting a few errors.
Invalid statement: rec at 21:1
No such variable: amalow at 22:28
No such variable: amaHigh at 22:59
doCalc: Invalid parameter
Any idea why it wouldn’t work 1 for 1 on my setup? After putting an extra comma in the if statement where it seems on should go amaLow seems to be defined, but amaHigh is never declared? Any thoughts? I hope you had a great Friday night.
Thanks
Sorry all – Bitten once again by WordPress’ HTML editor which randomly throws things out when it doesn’t like them.
The code is fixed now.
-TS
hi,
finally, i found somebody in the www, who shares the same idea with me. I also developed a binary wave system in 2004 and i realy interested how your system works live. Can you explain your wave, please? Wich underlyings do you use?
kind regards
mac
Mac,
I did not develop this indicator but did create the code for TOS. Perry Kaufman developed the indicator.
Eric