OPEN-SOURCE SCRIPT

Volatility Adjusted EMA (VAEMA)

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The pine script shown in the code is an indicator that calculates the volatility-adjusted exponential moving average (VAEMA) of a given data series. The VAEMA indicator uses a variable alpha value in the EMA calculation, with the alpha value being inversely proportional to the volatility of the data. This allows the VAEMA indicator to provide a more accurate representation of the data's trend. The user can specify the length of the data series, the alpha value, and whether to invert the proportionality of the alpha value in the calculation. The resulting VAEMA line is plotted on the chart.

inverted alpha proportions
snapshot

long lookback regular
snapshot

long lookback inverted
snapshot

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