Centered TMA Bands with ATR-Based Upper and Lower Channels

Summary

This document describes a price channel built around a centered Triangular Moving Average (TMA). The center line is calculated as a weighted average of prior closing-price averages, with weights decreasing across the lookback. Upper and lower boundaries are placed symmetrically around that center by adding or subtracting an ATR value multiplied by a chosen factor. The example settings use a half-length of 50, an ATR length of 100, and a multiplier of 2.0.

The indicator is presented as a tool that may be useful across different market phases and as a base for other strategies, but it does not specify entry, exit, or position-sizing rules. No trading results or systematic evaluation are offered. Because the average is centered, some values may rely on observations on both sides of a point in time; the document does not explain how that affects historical plotting or real-time use. Traders would need to define and test a separate decision process before treating the bands as signals.

Key ideas

• The center line is a weighted Triangular Moving Average calculated from prior price averages.
• The channel width is set by ATR multiplied by a configurable factor.
• The upper and lower bands sit symmetrically around the TMA center.
• The document gives indicator settings but no entry, exit, or performance evaluation.

Tags

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