The Coral Indicator: A Smoothed Moving Average with Configurable Price

Summary

The document explains Coral, a colored moving-average indicator built from a cascade of six recursively smoothed price series. The final output combines the intermediate series with fixed weights, while the user configures a smoothing coefficient and the applied price. The coefficient determines the degree of smoothing: smaller settings correspond to a longer effective calculation period, and a value of one reduces the calculation period to one.

This is a calculation description rather than a tested trading strategy. The text gives no entry or exit rules, market examples, comparative results, or evidence that Coral predicts returns. Its usefulness depends on implementation details such as initialization and the selected input price, which are not discussed. The stated coefficient range is 0.0086 to 1.0; traders would need to evaluate the indicator in the context of a defined strategy and account for the limits of any moving average, including its reliance on past prices.

Key ideas

• Coral combines six recursively smoothed price series using fixed weights.
• The indicator exposes a smoothing coefficient and an applied price as configurable inputs.
• Lower coefficient values create a longer effective calculation period.
• The document describes the calculation but provides no trading rules or performance evidence.
• Implementation choices such as initialization are not covered.

Tags

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