The strategy tries to combined three different moving average strategies into one.
Strategies covered are:
1. Tillson Strategy
Developed by Tim Tillson, the is considered superior to traditional moving averages as it is smoother, more responsive and thus performs better in ranging market conditions as well. However, it bears the disadvantage of overshooting the price as it attempts to realign itself to current market conditions.
It incorporates a smoothing technique which allows it to plot curves more gradual than ordinary moving averages and with a smaller lag. Its smoothness is derived from the fact that it is a weighted sum of a single , , and so on. When a trend is formed, the price action will stay above or below the trend during most of its progression and will hardly be touched by any swings. Thus, a confirmed penetration of the and the lack of a following reversal often indicates the end of a trend. Here is what the calculation looks like:
T3 = c1*e6 + c2*e5 + c3*e4 + c4*e3, where:
– e1 = (Close, Period)
– e2 = (e1, Period)
– e3 = (e2, Period)
– e4 = (e3, Period)
– e5 = (e4, Period)
– e6 = (e5, Period)
– a is the factor, default value is 0.7 but 0.618 can also be used
– c1 = – a^3
– c2 = 3*a^2 + 3*a^3
– c3 = – 6*a^2 – 3*a – 3*a^3
– c4 = 1 + 3*a + a^3 + 3*a^2
T3 MovingThe generally produces entry signals similar to other moving averages and thus is traded largely in the same manner.
Strategy for Tillson T3 is if the close crossovers T3 line and for at least five bars the close was under the T3
2. Tillson T3 Fibonacci Cross
Kivanc Ozbilgic added a second T3 line with a factor of 0.618 (Fibonacci Ratio) and length of 3 (fibonacci number) which can be added by selecting the T3 Fibonacci Strategy input box.
Strategy for Tillson T3 Fibo is when the Fibo Line crossover the T3 it gives long signal vice versa.
MavilimW is originally a indicator based on fibonacci injected weighted moving averages.
Strategy for MavilimW is is if the close crossovers T3 line and for at least five bars the close was under the T3
Hope you enjoy
2. Fixed a bug for displaying T3 Fibo Plot
-- Alert Condition Added If User prefer to use script as Study