Adaptive One More Average with ATR-Based Step Changes
Summary
The indicator combines an adaptive One More Average (OMA) smoothing formula with a step function. Its adaptive period estimates the balance between directional movement and accumulated price noise, then adjusts the averaging period within bounds based on a length setting. A speed parameter changes the smoothing response, while adaptation can be disabled to use a fixed period. Multiple smoothing stages produce the OMA line.
A second stage uses average true range over a configurable period to set step size, scaled by a sensitivity input. Price crossing upper or lower thresholds changes the trend state; in each state, the output is constrained to move in a stepwise direction and is colored to distinguish direction. This makes the indicator a configurable way to reduce noise and show directional changes. The document supplies the formula and default settings but no comparative study, trading rules, or performance results. Its behavior will depend on parameter choices, price data, and implementation details.
Key ideas
- The OMA calculation adjusts its averaging period using a comparison of directional movement with price noise.
- A speed input alters smoothing, and adaptation can be switched off for a fixed period.
- Average true range and sensitivity determine the size of the indicator’s step changes.
- Price crossings of thresholds update the directional state, with the output constrained and colored accordingly.
- The description provides formula details but 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.