The AIS Weighted Moving Average indicator calculates a weighted moving average, and allows you to determine the beginning of the trend movement of the market.
The weight coefficients are calculated taking into account the specific features of each bar. This allows you to filter out random market movements.
The main signal confirming the beginning of the trend is a change in the direction of movement of the indicator lines and the price crossing the indicator lines.
- WH (blue line) is the weighted average of High prices.
- WL (red line) is the weighted average of Low prices.
- WS (green line) is the weighted average of all price points.
- LH – the number of bars to calculate the values.
For a quick selection of LH, first of all, you need to check the values that are multiples of the highest time frames.
For example, the indicator is set to M15.
Then check the following LH values
- M30/M15 = 2
- H1/M15 = 4
- H4/M15 = 16
- D1/M15 = 96
- W1/M15 = 480
The values in the middle between them may also be of interest.