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.
EMATA = Alpha * Price + (1-Alpha) * (PrevEMATA + Trend) Trend = Beta * (EMATA - PrevEMATA) + (1 - Beta) * PrevTrend
Price - SMA(1, Applied price)
Fig 1. Trend component is not used.
Fig. 2. Trend component is used.