Thread: wellxAMA - Vertex FX Indicator

The wellxAMA is a powerful vertex FX indicator based on Adaptive Moving Average. It provides excellent trading opportunity and is especially useful in trend-following systems, and employs the concepts of digital filters.

In the first step, we calculate the AMA (Adaptive Moving Average) based on the PERIOD_AMA. We then calculate the signal-to-noise ratio (SNR) based on the change in price on each candle and smooth this SNR using the NFAST and NSLOW smoothing period. Finally, the wellxAMA is calculated based on the AMA and this smoothed SNR. The DK threshold is used to move the trailing stop upwards in up trends and downwards in down trends. The AMA indicator displays blue dots in bullish breakout, and yellow dots in bearish breakouts.

BUY - Enter BUY when candle closes above the blue dot. Set stop-loss to nearest support below the blue dot. Avoid entry if candle gaps up above the blue dot.

SELL - Enter SELL when candle closes below the yellow dot. Set stop-loss to the nearest resistance above the yellow dot. Avoid entry if candle gaps below the yellow dot.