Technical Indicator ( ) was developed by John , code was implemented by TradingView user Shizaru. I've updated it to Pine Script 4 and added Bands Extension.
This indicator is constructed based on the algorithm of the , in which the smoothing factor is calculated based on the current dimension of the price series.
- possibility to follow strong trend movements
- determine moments of price consolidation ( sufficiently slow down at these moments)
The serves as a base for the Upper and Lower Bands which are used as a way to measure by observing the relationship between the Bands and price. Typically the Upper and Lower Bands are set to two standard deviations away from the ; however it should be adjusted depending on the task.