Enhanced DWMA | QuantEdgeB

7 فبراير

Introducing Enhanced DWMA by QuantEdgeB

Enhanced DWMA | QuantEdgeB is an advanced Dual Weighted Moving Average (DWMA) system with three customizable filtering methods: ATR-based filtering, Standard Deviation (SD) bands, and a For-Loop-based trend scoring system. This indicator offers a versatile, adaptive approach to trend detection, allowing traders to fine-tune settings for breakout trading, trend confirmation, or volatility-based trend filtering.


Key Features:

1. DWMA – Dual Weighted Moving Average 🟣
- A smoother, adaptive moving average that applies distance-based weighting to emphasize the most relevant price movements.
- Helps reduce noise while maintaining trend sensitivity.
- The DWMA is further smoothed using an exponential moving average (EMA).

2. Filtering Methods:🟢
This indicator offers three different filtering styles, allowing traders to select the most suitable approach for their market strategy.

1️⃣ ATR-Based Filtering 📈 (Default)
- Uses Average True Range (ATR) to dynamically adjust the upper and lower bands based on market volatility.
- Expands during high volatility and contracts in stable conditions, offering a stable trend filter.

2️⃣ Standard Deviation (SD) Bands 🎯
- Uses historical price deviation to expand and contract bands dynamically.
- Excellent for identifying breakout trends as SD bands widen in high volatility conditions.

3️⃣ For-Loop Trend Scoring 🔄
- Oscillator-style filtering method that assigns a trend score by comparing current and past DWMA values.
- Helps quantify bullish/bearish trend strength over a given period.
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How It Works:

1. DWMA Calculation: A unique weighting function assigns more significance to recent price movements. Further smoothed by an EMA to ensure a balanced response to trend shifts.

2. Filter Application:
- The selected filter (ATR, SD, or Loop) determines the upper and lower boundaries for signal confirmation.
- ATR Bands expand based on market volatility, SD Band react to standard deviation shifts, and Loop Scores measure price structure momentum.

3. Signal Production:
- Long Signal (🔵): Triggered when price closes above the upper boundary of the selected filter.
- Short Signal (🔴): Triggered when price closes below the lower boundary of the selected filter.
- In For-Loop mode, signals are based on whether the trend score exceeds the predefined long/short threshold.

4. Live Filter Selection Display:
- The selected filtering method (ATR, SD, or Loop) is displayed in the bottom-right table of the chart.
- This ensures traders can easily track which filtering system is in use without checking settings manually. When For-Loop mode is not selected, the For-Loop oscillator score will appear slightly blurry, ensuring it doesn't interfere with the active filter visualization

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How to Use It:

✅ For Trend Following & Volatility Expansion (Recommended: ATR Filtering)
- ATR Bands (default) provide a stable, volatility-adjusted trend filter that ensures fewer false
signals.
- Use higher ATR multipliers for longer-term trends (e.g., ATR Multiplier = 1.5+ for swing
trading).

✅ For Breakout & Momentum Trading (Recommended: SD Filtering)
- SD Bands are ideal for capturing explosive trend movements as they expand in volatile
conditions.
- Works best when combined with momentum indicators (e.g., ADX, RSI) to confirm
breakouts.

✅ For Smooth Trend Evaluation (Recommended: For-Loop Mode)
- For-Loop mode provides a more gradual and smooth trend evaluation by scoring trend
strength over time.
- Can be used to confirm trade entries and exits based on long/short thresholds.
- Works well for traders who prefer a less reactive, more structured approach to trend
identification.

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Customization Options:

- Filter Style Selection 🎛️
- ATR (Default) ✅
- Weighted SD Bands
- For-Loop Trend Scoring

- DWMA & EMA Smoothing ⏳
- DWMA Length (Default: 12)
- EMA Smoothing Length (Default: 12)

-ATR-Based Settings 📈
- ATR Length (Default: 14)
- ATR Multiplier (Default: 1.3)

- SD Band Settings 📏
- SD Length (Default: 30)
- Upper SD Weight (Default: 1.035)
- Lower SD Weight (Default: 1.02)

- For-Loop Trend Scoring Settings 🔄
- Loop Start (Default: 1)
- Loop End (Default: 60)
- Long Threshold (Default: 40)
- Short Threshold (Default: 8)

- Color Modes 🎨
- Default, Solar, Warm, Cool, Classic, X

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Conclusion:
The Enhanced DWMA | QuantEdgeB is a robust trend-following and filtering system that allows traders to adapt to different market conditions with three customizable filter styles. Whether you're looking to ride stable trends (ATR), trade breakouts (SD), or quantify trend persistence (For-Loop), this indicator provides flexibility and precision in market analysis. 🚀📈

🔹 Disclaimer: Past performance is not indicative of future results. No trading indicator can guarantee success in financial markets.
🔹 Strategic Consideration: As always, backtesting and strategic adjustments are essential to fully optimize this indicator for real-world trading. Traders should consider risk management practices and adapt settings to their specific market conditions and trading style.

20 فبراير

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