Triple-Pass Weighted Moving Average for Smoother Trend Tracking

Summary

The RSS_WMA indicator applies three weighted moving average passes in sequence to create a deliberately smooth line. Its combined smoothness setting is allocated across the three passes, so increasing the setting lengthens the smoothing process. The design prioritizes filtering smaller price fluctuations and showing broader trends over quick responses or low lag; settings below three leave the input price effectively unsmoothed.

The line changes color according to its slope and can mark confirmed swing direction changes after a bar closes. It is presented as a slow baseline for comparison with a faster moving average, broader trend visualization, and possible exit guidance. Alerts can flag upward and downward swings. The document provides the construction and intended use, but no performance testing or comparison results, so the lag and usefulness of signals should be assessed for the instrument and timeframe being traded.

Key ideas

• The indicator smooths its selected price source through three sequential weighted moving average passes.
• Its combined smoothness setting is distributed among the three passes and controls the degree of smoothing.
• The design accepts greater lag in exchange for filtering smaller price movements and clarifying broader trends.
• Slope changes determine the line color and optional swing signals, which can be confirmed at bar close.
• The document gives intended uses but no measured evidence that the indicator improves trading results.

Tags

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