The indicator was developed by Tim Tillson in 1998.
The purpose of developing a new type of moving average is to improve noise filtration and reduce lagging - a disadvantage which is common to most moving averages. Multiple exponential smoothing of the price series is used for calculating. If the price crosses the rising T3 line from below, it is a buy signal; if the falling line is crossed from above, it is a sell signal. The indicator is based on a six-fold calculation of the exponential moving average.
The complete formula of the indicator calculation:
The indicator view in the chart.
The indicator has the following parameters:
Period - setting of the indicator calculation period.
Multiplier - set the coefficient by which the indicator values will be multiplied.
Source - setting of the indicator calculation parameters:
Panel/Moving average period - selection of the indicator location in the chart:
- New panel
Show value - display of the indicator value on the price scale on the left.
Scale/Auto-scaling - if this option is on, the scale will be automatically calculated, based on the minimum and maximum indicator values, so that the indicator would fit in the chart.
Color - color setting of the indicator.
Visual type - visual setting of the indicator display in the chart:
- Up arrow
- Down arrow
- Axis label
Line style - setting of the line display style:
- Dash - dot
- Dash - dot - dot
Width - setting of the indicator line width.
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