If you're looking to enhance your trading strategy, the Coral indicator might just be the tool you need. It’s essentially a colored moving average that can help you visualize market trends more effectively.
Let’s break down the two key parameters you can customize:
- Coefficient - This is your smoothing ratio, which plays a pivotal role in how the indicator reacts to price changes.
- Applied Price - This defines which price point the indicator uses for its calculations.
Calculation:
Coral = (-0.064) * B6 + 0.672 * B5 - 2.352 * B4 + 2.744 * B3
Where:
B6 = Coefficient * B5 + coeff2 * PrevB6
B5 = Coefficient * B4 + coeff2 * PrevB5
B4 = Coefficient * B3 + coeff2 * PrevB4
B3 = Coefficient * B2 + coeff2 * PrevB3
B2 = Coefficient * B1 + coeff2 * PrevB2
B1 = Coefficient * Applied price + coeff2 * PrevB1
coeff2 = 1.0 - Coefficient
* The smoothing ratio is crucial as it determines the calculation period. It should never be below 0.0086 or above 1.0. A lower value means a longer calculation period, while a value of 1 corresponds to a standard moving average period.
Comments 0