OPEN-SOURCE SCRIPT
Total Turnover Moving Average (TTMA)
This is a special type of moving average that incorporates financial information into technical indicators.
CONCEPT:
Number of shares outstanding (NOSH) reflects the floating tickets available for trading in the market. This indicator aims to look at what price has the market transacted on average, given all the NOSH has been turned over.
In order to do this, the number of periods required for trading volume to add up to NOSH is determined. Then, a simple moving average of closing price is calculated based on the number of periods.
Put simply, TTMA is a variable MA indicator, which the parameter depends on trading volume and NOSH. Since every counter has varying NOSH, it also translates volume into liquidity. Given two counters of the same volume , the one with lower NOSH has higher liquidity.
USAGE:
Bullish: when prices are above TTMA
Bearish: when prices are below TTMA
CAVEAT:
Generally works well for mid-cap to large-cap stocks, but not volatile penny counters (just like how you will not use 2-day moving average!). Good as reference and should NOT be used standalone.
CONCEPT:
Number of shares outstanding (NOSH) reflects the floating tickets available for trading in the market. This indicator aims to look at what price has the market transacted on average, given all the NOSH has been turned over.
In order to do this, the number of periods required for trading volume to add up to NOSH is determined. Then, a simple moving average of closing price is calculated based on the number of periods.
Put simply, TTMA is a variable MA indicator, which the parameter depends on trading volume and NOSH. Since every counter has varying NOSH, it also translates volume into liquidity. Given two counters of the same volume , the one with lower NOSH has higher liquidity.
USAGE:
Bullish: when prices are above TTMA
Bearish: when prices are below TTMA
CAVEAT:
Generally works well for mid-cap to large-cap stocks, but not volatile penny counters (just like how you will not use 2-day moving average!). Good as reference and should NOT be used standalone.
Script open-source
In pieno spirito TradingView, il creatore di questo script lo ha reso open-source, in modo che i trader possano esaminarlo e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricorda che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.
Script open-source
In pieno spirito TradingView, il creatore di questo script lo ha reso open-source, in modo che i trader possano esaminarlo e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricorda che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.