EMA_With_Trend_Adjustment - a moving average with exponential smoothing and correction by its trend component.

The indicator has four configured parameters:

  • Alpha - coefficient to calculate EMA;
  • Beta - coefficient to calculate the trend component;
  • Use Trend Adjustment - whether to use correction by trend (Yes/No);
  • Applied price - price used for calculations.

Calculations:

EMATA = Alpha * Price + (1-Alpha) * (PrevEMATA + Trend)
Trend = Beta * (EMATA - PrevEMATA) + (1 - Beta) * PrevTrend

where:

Price - SMA(1, Applied price)

Fig 1. Trend component is not used.

Fig. 2. Trend component is used.