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TMA

Source​

https://github.com/quadcode-tech/quadcodescript-library/blob/master/averages/ma_tma.lua

Syntax Format​

tma(series, period)

Overview​

TMA (Triangular Moving Average) is aimed to smooth the price movement and show more significant trends. The main difference of this Moving Average is adding an extra averaging layer for extra smoothing of the price movement. The TMA is suitable for long-term strategies, reducing the noise and showing prominent trends.

Parameters​

ParameterTypePurpose
sourceseriesInput series, taken into calculation
periodnumericMoving Average period

Returns*: series.

*If there are less than 2period-1 values in the series – the result is nan.

Example​

instrument { name = "Triangular Moving Average", short_name = "TMA", overlay = true, icon="indicators:MA" }

period = input (10, "period", input.integer, 1)
source = input (1, "source", input.string_selection, inputs.titles_overlay)

input_group {
    "TMA Line",
    color = input { default = "#4BFFB5", type = input.color },
    width = input { default = 1, type = input.line_width}
}

local sourceSeries = inputs [source]

plot (tma (sourceSeries, period), "TMA", color, width)

Formula​

The formula for calculating TMA is:

image.png

The first value of TMA is calculated as sma(series, period). Then, in order to add an extra averaging layer, another SMA is added.