This indicator uses machine learning (Artificial Intelligence) to solve a real human problem.
The Moving Average is the most used indicator on the planet, yet no one really knows what pair of moving average lengths works best in combination with each other.
A reason for this is because no two moving averages are always going to be the best on every instrument, time-frame, and at any given point in time.
The "Intelligent Moving Average" solves the moving average problem by adapting the period length to match the most profitable combination of moving averages in real time.
How does the Intelligent Moving Average work?
The artificial intelligence that operates these moving average lengths was created by an algorithm that tests every single combination across the entire chart history of an instrument for maximum profitability in real-time.
No matter what happens, the combination of these moving averages will be the most profitable.
Can we learn from the Intelligent Moving Average?
There are many lessons to be learned from the Intelligent Moving Average. Most will come with time as it is still a new concept. Adopting the usefulness of this AI will change how we perceive moving averages to work.
Limitations
Ultimately, there are no limiting factors within the range of combinations that has been programmed. The moving averages will operate normally, but may change lengths in unexpected ways - maybe it knows something we don't?
Thresholds
The range of moving average lengths is between 5 to 40. Additional coverage resulted in TradingView server errors.
Future Updates!
Soon, I will be publishing tools to test the AI and visualise what moving average combination the AI is currently using.
Thanks Grant for sharing. It’s an interesting and logical idea. I use moving averages in my trading and typically have an ema 20, sma 50, sma 100, and sma 200 to look at short, medium, and long term trends and of course you are quite right in that different stocks respect different lines, and they change over time!. There is an elegance in the “simplicity” of your approach. It will be interesting to see how it will perform in back testing. As per another user, yours tracks so closely sometimes it’s hard to see crossovers.
There is a script called “Entry Points” that does this elegantly which might help with some code ideas.
If I could suggest a couple of ideas. There is a script called MA ADX that I like as it combines a moving average with the adx to show you the strength of a trend. It shows you when to stay in and gives you an early warning when momentum is fading.
RSI is another universal indicator that might be interesting to incorporate ina future version somewhere.
There is a script called Open Close Cross Strategy R5.1 which was the best performing one using moving averages I could find which I apply to my charts every now and again. Will be interesting to see how your one will perform in back testing.
Most awesome thing is you giving back and sharing your script. I look forward to being part of the journey.
zAngus
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@Angusmck, also, and not sure if it matters, but I wonder if there should be an aggressive vs non aggressive setting where if you are a short term trader vs long term trader it might use narrower / broader signals to keep you in the trade for quicker or longer periods? Eg I might use the EMA 20 on risky speculative stocks, but use the MA 100 on stocks I like to hold longer term.
GrantPeace
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@Angusmck, I have taken into account everything you have said and will continue to provide updates and add-ons for this indicator. An update that shows where and when the cross happens will also come in the next few days. Thanks for the great feedback!
Jeezy4134
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Been waiting to try this - everyone like and support this guy please
GrantPeace
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@jayrob4134, Thanks. It will show up in the public library as soon as it achieves enough likes (I think 7 is the requirement or something?)
ICEKI
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GrantPeace Thank you so much for sharing. I actually don't feel good about MA, but your concept changed my thought. Again appreciated your efforts and generous =D
GrantPeace
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@ICEKI, Thanks! I also share the same attitute towards MA, but it is so widely used that it could not go without an improvement.
ICEKI
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@GrantPeace, understood, appreciated your efforts and generous =D
ashrafj1
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can you add stamp when cross over happened
GrantPeace
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@ashrafj1, Sure thing! I will include that in the update tomorrow.
There is a script called “Entry Points” that does this elegantly which might help with some code ideas.
If I could suggest a couple of ideas. There is a script called MA ADX that I like as it combines a moving average with the adx to show you the strength of a trend. It shows you when to stay in and gives you an early warning when momentum is fading.
RSI is another universal indicator that might be interesting to incorporate ina future version somewhere.
There is a script called Open Close Cross Strategy R5.1 which was the best performing one using moving averages I could find which I apply to my charts every now and again. Will be interesting to see how your one will perform in back testing.
Most awesome thing is you giving back and sharing your script. I look forward to being part of the journey.