Deviation Scaled Moving Average w/ DSL [Loxx]

16 Sep 2022

Deviation Scaled Moving Average w/ DSL [Loxx] as described in the “The Deviation-Scaled Moving Average.” article of July 2018 TASC . This is an adaptive moving average average that has the ability to rapidly adapt to volatility in price movement. This version adds Discontinued Signal Lines create the buy/sell signals.

What are DSL Discontinued Signal Line?

A lot of indicators are using signal lines in order to determine the trend (or some desired state of the indicator) easier. The idea of the signal line is easy : comparing the value to it's smoothed (slightly lagging) state, the idea of current momentum/state is made.

Discontinued signal line is inheriting that simple signal line idea and it is extending it : instead of having one signal line, more lines depending on the current value of the indicator.

"Signal" line is calculated the following way :

When a certain level is crossed into the desired direction, the EMA of that value is calculated for the desired signal line
When that level is crossed into the opposite direction, the previous "signal" line value is simply "inherited" and it becomes a kind of a level

This way it becomes a combination of signal lines and levels that are trying to combine both the good from both methods.

In simple terms, DSL uses the concept of a signal line and betters it by inheriting the previous signal line's value & makes it a level.

Included

• 2 Signal types
  
• Alerts
  
• Loxx's Expanded Source Types
  
• Bar coloring