A Rounded Moving Average That Ignores Small Reversals

Summary

The document describes a moving-average indicator that combines moving-average behavior with a ZigZag-style reversal rule. Its rounding parameter sets how far price must move against the previous direction before the indicator responds. This creates a threshold for ignoring smaller counter-moves and makes the plotted average respond to sufficiently large reversals.

The text says the indicator was first implemented in MQL4 and later describes its use with an MQL5 smoothing-algorithm library. It identifies the parameter’s role but does not explain the averaging formula, provide trading rules, or report any performance tests. The threshold can therefore be understood as a chart-smoothing control, not as evidence of a profitable signal. The document also offers no guidance on choosing the parameter across instruments or timeframes.

Key ideas

• The indicator blends a moving average with a ZigZag-like rule for recognizing reversals.
• A rounding threshold controls how much counter-movement is needed before the average responds.
• The parameter changes indicator sensitivity but is not accompanied by a selection method.
• The document describes implementation context without presenting trading performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.