OPEN-SOURCE SCRIPT
Binomial MA
Updated
The Binomial MA is a custom moving average indicator that uses a binomial distribution to calculate the moving average of a given price series. This allows for a more flexible and customizable moving average that can be tailored to different market conditions and trading strategies.
One key advantage of the Binomial MA is that it allows for more fine-tuned control over the length of the moving average. The length parameter can be adjusted between 5 and 20, with shorter lengths providing more responsive and reactive moving averages, and longer lengths providing smoother and more stable moving averages.
Additionally, the binomial distribution used in the calculation of the moving average allows for a more accurate representation of the underlying price series, as it takes into account the probabilities of different price movements over time. This can be particularly useful for identifying trends and making trading decisions.
Overall, the Binomial MA is a versatile and powerful moving average indicator that can be used by traders to better analyze and understand price movements in the market. It offers greater control and flexibility than traditional moving average indicators, and can be adjusted to suit a wide range of trading strategies and market conditions.
One key advantage of the Binomial MA is that it allows for more fine-tuned control over the length of the moving average. The length parameter can be adjusted between 5 and 20, with shorter lengths providing more responsive and reactive moving averages, and longer lengths providing smoother and more stable moving averages.
Additionally, the binomial distribution used in the calculation of the moving average allows for a more accurate representation of the underlying price series, as it takes into account the probabilities of different price movements over time. This can be particularly useful for identifying trends and making trading decisions.
Overall, the Binomial MA is a versatile and powerful moving average indicator that can be used by traders to better analyze and understand price movements in the market. It offers greater control and flexibility than traditional moving average indicators, and can be adjusted to suit a wide range of trading strategies and market conditions.
Release Notes
Major upgrade and now it actually works. Release Notes
Truncate weights always on.Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
Want to use this script on a chart?
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.