Gabriels Trend Regularity Adaptive Moving Average Dragon

23 feb 2024

This is an improved version of the trend following Williams Alligator, through the use of five Trend Regularity Adaptive Moving Averages (TRAMA) instead of three smoothed averages (SMMA). This indicator can double as a TRAMA Ribbon indicator by reducing the offset to zero. Whereas the active offset can double as a forecasting indicator for options and futures.

• This indicator uses five TRAMAs, set at 8, 21, 55, 144, and 233 periods. They make up the Lips, Teeth, Jaws, Wings, and Tail of the Dragon. This indicator uses convergence-divergence relationships to build trading signals, with the Tail making the slowest turns and the Lips making the fastest turns. The Lips crossing downwards through the other lines signal a short opportunity, whereas Lips crossing upwards through other lines signal a buying opportunity. The downward cross can be referred to as the Dragon "Sleeping", and the upward cross as the Dragon "Awakening".
  
• In particular, but not limited to, the Wings and Tail movements possess a Roar-like forecast effect on the market. Respectively, they can be referred to as the Dragon "Spreading its Wings" or "Swinging its Tail".
• The first three lines, stretching apart and constantly moving higher or lower, denote periods in which long or short equity positions should be managed and maintained. This can be referred to as the Dragon "Eating with a mouth wide open". Whereas indicator lines converging into narrow bands and shifting into a horizontal position can denote a trending period coming to an end, signaling the need for profit-taking and position realignment. Conversely, a previous flat line moving can denote a new trending period starting.
  
• This indicator can double as a Multiple TRAMAs indicator by reducing the offset to zero. As such, very interesting results can be observed when used in a moving average crossover system such as the Williams Alligator or as trailing support and resistance.
• The following moving average adapts to the average of the highest high and lowest low made over a specific period, thus adapting to trend strength. The TRAMA can be used like most moving averages, with the advantage of being smoother during ranging markets because it is calculated through exponential averaging.
  
• It is calculating, using a smoothing factor, the squared simple moving average of the number of highest highs or lowest lows previously made. Where the highest highs and lowest lows are calculated using rolling maximums and minimums. Therefore, squaring allows the moving average to penalize lower values, thus appearing stationary during ranging markets.
  
• As with all moving averages, it is still a lagging indicator, and it can suffer whipsaws when the market moves too violently or when it consolidates in ranging conditions. Despite it working in all timeframes, it won't be as formidable in the 1–5-minute scalping timeframes due to that. I would suggest 5 to 45 minutes if you are a swing trader, or hourly, daily, and weekly if you are a long-term investor.
  
• I hope you enjoy this indicator! It's the first indicator I made, so constructive criticism would be appreciated. Thanks!
  

23 feb 2024

Note di rilascio

This is an improved version of the trend following Williams Alligator, through the use of five Trend Regularity Adaptive Moving Averages (TRAMA) instead of three smoothed averages (SMMA). This indicator can double as a TRAMA Ribbon indicator by reducing the offset to zero. Whereas the active offset can double as a forecasting indicator for options and futures.

• This indicator uses five TRAMAs, set at 5, 8, 13, 55, and 233 periods. They make up the Lips, Teeth, Jaws, Wings, and Tail of the Dragon. This indicator uses convergence-divergence relationships to build trading signals, with the Tail making the slowest turns and the Lips making the fastest turns. The Lips crossing downwards through the other lines signal a short opportunity, whereas Lips crossing upwards through other lines signal a buying opportunity. The downward cross can be referred to as the Dragon "Sleeping", and the upward cross as the Dragon "Awakening".
  
• In particular, but not limited to, the Wings and Tail movements possess a Roar-like forecast effect on the market. Respectively, they can be referred to as the Dragon "Spreading its Wings" or "Swinging its Tail".
• The first three lines, stretching apart and constantly moving higher or lower, denote periods in which long or short equity positions should be managed and maintained. This can be referred to as the Dragon "Eating with a mouth wide open". Whereas indicator lines converging into narrow bands and shifting into a horizontal position can denote a trending period coming to an end, signaling the need for profit-taking and position realignment. Conversely, a previous flat line moving can denote a new trending period starting, in particular the jaws.
  
• This indicator can double as a multiple TRAMAs indicator by reducing the offset to zero. As such, very interesting results can be observed when used in a moving average crossover system such as the Williams Alligator or as trailing support and resistance.
• The following moving average adapts to the average of the highest high and lowest low made over a specific period, thus adapting to trend strength. The TRAMA can be used like most moving averages, with the advantage of being smoother during ranging markets because it is calculated through exponential averaging.
  
• It is calculating, using a smoothing factor, the squared simple moving average of the number of highest highs or lowest lows previously made. Where the highest highs and lowest lows are calculated using rolling maximums and minimums. Therefore, squaring allows the moving average to penalize lower values, thus appearing stationary during ranging markets.
  
• As with all moving averages, it is still a lagging indicator, and it can suffer whipsaws when the market moves too violently or when it consolidates in ranging conditions. Despite it working in all timeframes, it won't be as formidable in the 1–5-minute scalping timeframes due to that. I would suggest 5 to 45 minutes if you are a swing trader, or hourly, daily, and weekly if you are a long-term investor.
  
• I hope you enjoy this indicator! It's the first indicator I made, so constructive criticism would be appreciated. Thanks!
  

23 feb 2024

Note di rilascio

Added Claws, fixed default values to 89, 144, and 233 for the forecast dragon due to backtest results on SPY, Nasdaq, and E-Mini.

26 feb 2024

Note di rilascio

Added fractals and a basic support or resistance line based on those fractals. The default value is 2, which means it waits for two candles to close before confirming a reversal of trend, then draws a basic support and resistance line; a larger value will result in a stronger line. I would suggest values such as 8 or 13 for Fibonacci retracement. Also, this means all fractals seriously lagg behind price action, but you can see interesting effects when it pokes into the forecast dragon, either riding it for a large jump upwards or being seriously crushed under it. It could serve as an entry, or exit too, if you can't see the first three dragon lines well. Also, if there's too much stuff to keep track of, just go to settings and turn off what you don't use for a clearer graph. Enjoy :D

28 feb 2024

Note di rilascio

I added a dashed line projection to help visualize the angle of the multiple TRAMAs, a deviation shift percentage, repainting on/off, and customizable time frames and sources.