The Farey Sequence Weighted Moving Average (FSWMA), initially developed by everget and available on TradingView, has been converted to NinjaTrader 8 by MyDailyTake.com. This indicator blends traditional moving average calculations with the mathematics of the Farey sequence, offering a unique view into market dynamics.
Understanding the FSWMA
The FSWMA stands apart by integrating the Farey sequence—a method of creating fractions that are in simplest form and sorted in ascending order within specified limits—with the moving average. This integration alters the weighting mechanism traditionally used in moving averages, potentially offering a different approach to understanding price movements and trends.
Key Features of the Indicator
- Varied Sequence Orders: The FSWMA allows traders to adjust the ‘Order’ parameter, thereby influencing the smoothness and responsiveness of the moving average. This customization can help in aligning the indicator with specific trading styles and market conditions.
- Enhanced Visualization: It features color-changing capabilities that visually denote upward or downward trends, helping traders quickly discern potential changes in market direction.
- Flexible Customization: Traders have the opportunity to customize the visual aspects of the FSWMA, including color settings for upward and downward movements, to ensure consistency with their trading dashboard or personal preferences.
Conclusion
The Farey Sequence Weighted Moving Average offers an innovative modification to traditional moving average techniques. By implementing a mathematical sequence to adjust weighting, the FSWMA may provide new insights or nuances in market trend analysis that are not as readily apparent with standard indicators or moving averages.
Download
The original Pine Script™ code was developed by everget: Farey Sequence Weighted Moving Average and converted to NinjaTrader 8 under the GPL-3.0 license.
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