Ultimate Moving Average: A Weighted Blend of Moving Average Types

Summary

The indicator described as the Ultimate Moving Average combines three moving averages into one weighted value. Users can choose among simple, exponential, smoothed, and linear weighted averages, then adjust the periods and the weight assigned to each. Its stated purpose is to follow trends more effectively than a single moving average while reducing chart clutter compared with displaying several separate averages.

The author proposes using the line as a possible entry or exit signal when it crosses a price bar or a stop-loss level. An example is said to show its bar crossing near the point where a short and a longer simple moving average cross. This is an illustrative comparison, not a documented backtest: the post provides no market, parameter values, quantified results, or evidence that the indicator improves trading outcomes. The settings and signal behavior would need evaluation for the instrument and timeframe where it is used.

Key ideas

• The indicator blends three moving averages into one weighted series.
• Users can choose among four moving average types and adjust periods and weights.
• The author presents it as a less cluttered alternative to plotting several averages.
• Crossings of price bars or stop levels are suggested as possible signals.
• The example is anecdotal and does not establish performance.

Tags

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