Adaptive OMA Moving Averages in a MACD Indicator

Summary

This indicator builds a MACD from two One More Average (OMA) moving averages whose periods adapt to price movement relative to recent noise. A sensitivity setting adjusts the adaptation, while a switch disables it; separate fast and slow period inputs set the starting lengths. The MACD value is the difference between the slow and fast averages.

The signal line uses an Arnaud Legoux Moving Average, with length, sigma, and offset inputs. The indicator also colors the MACD according to its sign and its scale against recent highs and lows. The document gives implementation details and default parameter values, but no trading rules, market tests, or performance evidence. It notes that the dynamic gradient coloring requires ProRealTime version 10.3 or later. The adaptive formula is attributed to an MT4 version found online, so its origin and behavior are not independently validated here.

Key ideas

• OMA fast and slow averages adapt their periods using price movement relative to accumulated noise.
• A sensitivity input controls adaptation, and a separate setting can turn it off.
• The MACD line is the slow OMA minus the fast OMA, with an ALMA signal line.
• Dynamic coloring scales the MACD against recent extremes and requires a compatible platform version.
• The document describes an indicator implementation but provides no evidence of trading performance.

Tags

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