Projecting SMA Paths from Slope and Acceleration with Dampening

Summary

This educational indicator plots nine forward paths based on a smoothed moving average. It estimates the SMA’s current slope from its one-bar change and acceleration from summed second differences over a configurable window. Each path uses a different dampening factor, arranged around a central value and spaced by a growth setting, to vary the projected curve’s curvature. Users can adjust the SMA and acceleration windows, input series, offset, projection length, and whether to clear older drawings.

The document explains Pine Script techniques for organizing each path’s points, color, and dampening value in a user-defined type containing an array, then drawing the paths as chart polylines. It provides formulas and implementation details, but no trading rules, market study, or performance evidence. These are visual extrapolations of recent SMA behavior, not validated forecasts; their usefulness depends on settings and market conditions, and the script does not quantify predictive accuracy.

Key ideas

• The indicator estimates SMA slope from its latest change and acceleration from summed second differences.
• It projects a quadratic curve using the starting SMA value, slope, acceleration, and a dampening factor.
• Nine paths vary the dampening factor to show alternative curvature around a central setting.
• Pine Script user-defined types and nested arrays store each path’s points and display properties.
• The document offers no backtest or evidence that the projected paths predict future prices.

Tags

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