Bill Williams Moving Average technical indicator shows the average price value of an instrument for a certain time period. In contrast to Simple Moving Average there is no mathematical averaging of the instrument price for a given period of time. Only the current price value and the previous indicator value are used in the calculation.
The indicator is calculated according to the formula:
BWMA(t) = (1-1/N)*BWMA(t-1)+CLOSE(t)/N
How the indicator looks like in the chart:
The indicator has the following parameters:
Settings
Period - sets the indicator period.
Common
Source - setting of the indicator calculation parameters:
- Open
- High
- Low
- Close
- Volume
Drawing
Visualization
Panel - selection of the indicator location in the chart:
- New panel
- Chart
Show value - shows the indicator value on the price scale.
Show zero values - shows zero values.
Scale -if this option is ON, the scale will be calculated automatically based on the minimum and maximum indicator values, so that the indicator would be accommodated in the chart.
Color
Visual type - visual setting of the indicator display in the chart:
- Line
- Histogram
- Hash
- Block
- Cross
- Square
- Dots
- Up arrow
- Down arrow
- Axis label
- Hide
Line style - setting of the line display style:
- Dot
- Solid
- Dash
- Dash - dot
- Dash - dot - dot
Width -setting of the indicator line width.
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