[blackcat] L1 Tim Tillson IE/2

21 jun 2021

Level: 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.