Tillson IE/2 [CC]The IE/2 was created by Tim Tillson (Stocks and Commodities Jan 1998) and this is a practically undiscovered gem because in that same article he goes on to to create the popular T3 moving average and the GDEma but practically no one seemed to notice the IE2 or maybe it is just my imagination. Anyway this indicator name is short for Integral of Linear Regression Slope + Endpoint Moving Average / 2 so you can why it was shortened to IE/2. Like the name implies this takes two variations of smoothing that complement each other and averages them together to in theory get the benefits of each. The EPMA is much noiser but follows the data more closely and the complete opposite for the ILRS so you can see the idea in action. Like all of my indicators I include strong buy and sell signals in addition to normal ones so strong signals are darker in color and normal signals are lighter in color. Buy when the line turns green and sell when it turns red.
Let me know if there are any other indicators or scripts you would like to see me publish!
Ie2
[blackcat] L1 Tim Tillson IE/2Level: 1
Background
Before this script, I cannot find a IE/2 moving average script in tradingview. Although it is not so complex, it is meaningful to be the 1st Tim Tilson IE/2 script in tradingview community. IE/2 moving average was disclosed in "Smoothin Techniques For More Accurate Signals", Tim Tilson, S&C Magazine, Traders Tips, 01/1998.
Function
IE/2 is one of pre-studies created while T3 famous average was developing. It is calculated as (ILRS(n)+EPMA(n))/2. ILRS, is an integral of linear regression slope. In this moving average, the slope of a linear regression line is simply integrated as it is fitted in a moving window of length n across the data. The derivative of ILRS is the linear regression slope.EPMA is an end point moving average - it is the endpoint of the linear regression line of length n as it is fitted across the data. EPMA hugs the data more closely than a simple or exponential moving average of the same length.
The most popular method of interpreting a moving average is to compare the relationship between a moving average of the security's price with the security's price itself (or between several moving averages).
Inputs
Price --> price data to use
Period --> number of bars to use in calculation
Key Signal
Price --> Price Input.
IE/2 --> IE/2 Ouput.
Remarks
This is a Level 1 free and open source indicator.
Feedbacks are appreciated.
