If you're looking to fine-tune your trading strategy, the MA Lag Reduce indicator is a game changer. This tool isn’t just your average Simple Moving Average (SMA); it comes with a unique twist that allows you to eliminate delay, making your trading signals sharper and more responsive.
Here’s a quick rundown of the three key input parameters you’ll want to set:
- Period: This determines how many candles the indicator will look back on.
- Applied Price: Choose which price you want to apply the moving average to, like closing price or open price.
- Lag Reduce Factor (*): This is where the magic happens.
How it Works:
MLR = ((MA / PrevMA) ^ RLFactor) * MA
Here’s the breakdown:
MA - SMA(Applied Price, Period)
* Note: Setting the Lag Reduce factor to 0 will revert the indicator back to a standard SMA with the same parameters.
Fig. 1. MA Lag Reduce. Period 14, ratio 1.5
Fig. 2. MA Lag Reduce. Period 14, ratio 3.0 vs. SMA(14)
Fig. 3. MA Lag Reduce. Period 14, ratio 1.5 vs. SMA(14)
Fig. 4. MA Lag Reduce. Period 14, ratio 0.0 vs. SMA(14)
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