WLMA (Wealth-Lab Moving Average)

Modified on 2012/02/02 11:00 by Eugene — Categorized as: Community Indicators

WLMA (Wealth-Lab Moving Average): Indicator Documentation

Syntax


DataSeries WLMA(Bars bars, DataSeries ds, int howManySwings)

Parameter Description

bars	A Bars object
ds	DataSeries to apply WLMA to
howManySwings	How many recent swing points to take when computing the indicator

Description

WLMA (Wealth-Lab Moving Average) is an adaptive, market-driven simple moving average created by Gene Geren. Its lookback period is dynamically changing with market conditions, driven by the Adaptive Lookback Period indicator.

The WLMA is calculated just like SMA, but the key difference is that there's no fixed lookback period. WLMA's lookback period is variable-length and is determined by the Adaptive Lookback value obtained using the specified howManySwings parameter.

Since WLMA heavily depends on Adaptive Lookback, it's advised to review the indicator's online documentation to understand its construction and interpretation guidelines.

Example

See how more responsive is WLMA (10 last swings) when compared to a short-term 10-bar SMA:

WLMA vs. SMA