Third Generation Moving Average - MetaTrader 4 Script | Forex Indicator Download - MT4/MT5 Resources
An advanced version of the standard Moving Average indicator that uses a fairly simple procedure to reduce time lag as the moving average period increases. The method was first described by Manfred G. Dürschner in his article Gleitende Durchschnitte 3.0 (German). The proposed implementation uses λ = 2, which minimizes latency. Higher λ increases the similarity to the classical moving average.
Input parameters:
As you can see, the third generation moving average (red line) has slightly less lag than the traditional EMA (blue line) and reacts more quickly to price changes. Unfortunately, it still has some lag and may give false signals. This indicator can be used like a standard moving average - to determine the direction of the current trend.
Attachment download
📎 3rdgenma.mq4 (3.45 KB)
Source: MQL5 #13139
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