A Weighted Blend of Moving Averages for Trend Signals
Summary
ESSMA is an indicator concept that combines simple, exponential, weighted, smoothed, and running moving averages into a configurable line, then compares it with a further smoothed version. Crosses between the two lines mark upward or downward signals. The indicator can optionally use ATR as its input, and its settings expose weights and a sample length of 50. The document describes the combined line as a possible larger-timeframe support or resistance reference and a way to observe breakouts and follow-through.
The material offers a brief rationale and source settings, along with published BTC/USDT futures chart intervals, but no quantified test results. It specifically says ATR did not produce good results in the author's experience, without giving details or measurements. The method's usefulness therefore remains unverified, and configurable weights may require careful evaluation. The source also includes both indicator alerts and strategy entries, so readers should distinguish the plotted crossover concept from any validated trading performance.
Key ideas
- The indicator blends five moving-average types using configurable weights.
- Crosses between the blended line and its weighted moving-average smoothing generate directional signals.
- ATR is optional, though the author reports unsatisfactory results with it without providing evidence.
- A sample length and BTC/USDT futures chart intervals are supplied, but no performance statistics are given.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.