Moving average, as well as any other indicator, may be calculated on the basis of 7 price constants only. The proposed modification of the moving average will allow calculating the indicator on the basis of any combination of 4 basic prices (close, open, high, low).
- MA_Period – period for the calculation of the indicator,
- MA_Shift – indicator’s shift related to the chart,
- MA_Method – method of averaging (0 – SMA, 1 – EMA, 2 – SMMA, 3 – LWMA),
- Close_coef – coefficient of the use of CLOSE in individual price,
- Open_coef – coefficient of the use of OPEN in individual price,
- High_coef – coefficient of the use of HIGH in individual price,
- Low_coef – coefficient of the use of LOW in individual price.
- Calculate indicator by OPEN price: Close_coef = 0, Open_coef = 1, High_coef = 0, Low_coef = 0.
- Calculate indicator by WEIGHTED price: Close_coef = 2, Open_coef = 0, High_coef = 1, Low_coef = 1.
- Calculate indicator by individual price constant: Close_coef = 0, Open_coef = 7, High_coef = 25, Low_coef = 80. Price = (7*Open + 25*High + 80*Low)/112.
So, the trader may draw a moving average by any combination of 4 basic prices. In case if coefficient will be below or equal to zero, the appropriate price will not be used for the calculation of individual price constant.