Slope Adaptive Moving Average

INTRODUCTION

This script is inspired from "Vitali Apirine (Stocks & Commodities V.36:5: Adaptive Moving Averages)" and a correction to Dynamic Volume Adaptive Moving Average (MZ DVAMA). I have used slope filtering in order to adapt trends more precisely for better trades.
Slope adaption makes it better for adaptive moving average to detect trend health; making it easier to make decisions based on market strong price momentums, consolidations or breakouts. This isn’t possible with only using simply Adaptive Moving Averages.
Adaptive Moving Averages curve doesn’t change its length based on Slope but it uses slope adaptive color for trend strength detection.

TREND DETECTION
Green Color:
Strong Uptrend with good price momentum.
Red Color:
Strong Downtrend.
Yellow Color:
Market is either choppy, sideways or consolidating. Better to avoid taking new positions and if trade is running then its good to carry it on.

DEFAULTS SETTINGS
AMA length is 200 (Better for timeframes higher than 1H)
Minor length is 6
Major length is 14
Slope period is set to 34 with 25 of initial range. Consolidation is always below 17.
ALERTS
Buy/Sell Alerts will follow on when slope is out of consolidation/ choppiness area. Best entry is at absolute alerts timing but other trades can be started midway based on trend condition.

backtest

Source

Pine

/*backtest
start: 2022-04-30 00:00:00
end: 2022-05-29 23:59:00
period: 10m
basePeriod: 1m
exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}]
*/

// This source code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// © MightyZinger

//@version=5

Strategy parameters

Chart Resolution

Chart Resolution (Optional)

Source

close

Source

SAMA Length Inputs

Adaptive MA Length

Major Length

Minor Length

Slope and Dynamic Coloring Parameters

Slope Period

Slope Initial Range

Consolidation area is when slope below

Consolidation area is when slope below:

Bull Color

Bear Color

Reversal/Consolidation/Choppiness Color

Plot Parameters

Show Signals on Chart

Related strategies

Slope Adaptive Moving Average