A Multi-Timeframe Weighted-Average Rate-of-Change Indicator
Summary
The document presents a ProRealTime indicator that estimates price rate of change using weighted moving averages across the current timeframe and two higher timeframe proxies. Each rate line adds a scaled difference between a current weighted average and its value a specified number of bars earlier to a supporting weighted average. The three rate lines are averaged, and that composite is smoothed to produce a final line. A separate supporting average is also plotted.
The indicator displays six lines to distinguish the supporting average, the three timeframe rate estimates, their average, and the smoothed average. Its periods and scaling coefficients are configurable, with example coefficient choices for several chart intervals. The author notes that the platform code cannot identify the active timeframe automatically, so users must adjust coefficients themselves. The claimed lower lag and clearer presentation than a simple moving average are not supported by comparative tests or performance evidence; parameter selection and timeframe mapping remain user-dependent.
Key ideas
- The indicator estimates rate of change from weighted-average differences over configurable bar spans.
- It constructs three rate lines intended to represent the current timeframe and two higher timeframe scales.
- The three rate estimates are averaged, and a further average smooths the composite.
- The plotted lines separate the supporting average, rate estimates, combined line, and smoothed line.
- Users must set timeframe coefficients manually, and the document provides no empirical comparison or trading results.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.