FantailVMA: An ADX-Weighted Adaptive Moving Average

Summary

FantailVMA is presented as a moving average whose responsiveness changes with market conditions. Its calculation smooths directional movement and true range to derive ADX-related values, then uses the recent ADX range to set a coefficient that controls how the variable moving average incorporates the latest close. The resulting line is intended to show trend movement while adapting its sensitivity to price action.

The document provides ProRealTime code and lists default settings for the ADX lookback, smoothing weight, and final averaging length. It notes that the final average length should be one if the variable moving average baseline is to remain unaveraged. The source describes the indicator as more responsive than a traditional moving average, but supplies no chart, backtest, or comparison to support that claim. It gives no entry, exit, or risk rules, so the indicator alone does not define a trading strategy.

Key ideas

• FantailVMA combines a variable moving average with ADX-style directional movement and true-range calculations.
• A coefficient based on the recent ADX range adjusts how strongly the average incorporates the latest close.
• The provided code includes settings for ADX lookback, smoothing weight, and final averaging length.
• The document describes intended trend responsiveness but gives no performance evidence or trading rules.

Tags

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