Seeing Colors With This New Trading Technique

Discussing a New Technical Indicator and Coding it in TradingView

This article discusses a personal technical indicator based on the concept of special moving average crossing. Technical indicators are mathematical calculations based on historical price, volume, or open interest data, used by traders and analysts to forecast future price movements in financial markets. They help in analyzing market trends, volatility, momentum, and trading signals.

Creating the Violet Indicator

Moving averages come in all shapes and types. The most basic type is the simple moving average which is simply the sum divided by the quantity. The next mathematical representation shows how to calculate a simple mean given a dataset:

Therefore, the simple moving average is the sum of the values divided by their number. In technical analysis, you generally use moving averages to understand the underlying trend and to find trading signals. In the case of the Violet indicator, we are using a Hull moving average which is a special variation based on different weights to minimize lag.