Ultimate Moving Average
Ultimate Moving Average
Moving Average based on Ultimate Oscillator (I modified Ultimate Oscillator’s code). It calculates a weighted average of three moving averages (Simple, Exponential, Smoothed, or Linear Weighted). Highly adjustable, 3 periods and weight of each period.
IMHO it follows a trend better than a single moving average, it can also be used as an Entry/Exit signal when crossing a bar or stop-loss level.
A very good alternative to SMA or EMA for those who don’t like clutter. E.g. use one Ultimate MA instead of two/three SMAs (or EMAs).
In this example, it clearly crosses the bar very close to the crossing of SMA(5)/SMA(34).