BatMA indicator is a modified standard Moving Average indicator.
BatMA indicator provides the ability to use both conventional averaging methods (SMA, SMMA, LWMA, EMA), and averaging by means of a second-order Butterworth filter. In radio engineering, a similar filter is used to separate frequency signals.
BatMA indicator settings
MA_Period - moving average period, a standard parameter;
MA_Shift - indicator line shift relative to the price chart, in bars;
MA_Method - moving average averaging method:
- 0 - simple moving average (SMA),
- 1 - exponential moving average (EMA),
- 2 - smoothed moving average (SMMA),
- 3 - Linear Weighted Moving Average (LWMA),
- 4 - smoothing by the 2nd order Butterworth filter (BatMA).
According to ForTrader.org experts, BatMA indicator can be used as a trend indicator in existing trend-following strategies, replacing the standard Moving Average indicator and increasing the efficiency of these trading systems.