This indicator calculates the sum of all past candles for each new candle.
For the second candle of the chart, the indicator shows the average of the first two candles. For the 10th candle, it's the average of the last ten candles. Simple Moving Averages (SMAa) calculate the average of a specific timeframe (e.g. SMA200 for the last 200 candles). The historical moving average is an SMA 2 at the second candle, an SMA3 for the third candle, an SMA10 for the tenth, an SMA200 for the 200th candle etc.
Settings:
You can set the multiplier to move the Historical Moving Average along the price axis.
You can show two Historical Moving Averages with different multipliers.
You can add fibonacci multipliers to the Historical Moving Average.
This indicator works best on charts with a lot of historical data.
Recommended charts:
INDEX:BTCUSD
BLX
But you can use it e.g. on DJI or any other chart as well.
I was asked, if the indicator can be used for other timeframes than the daily chart.
Yes! But you need to know:
The historical Average indicator works in every timeframe. The reason why it seems that the results in different timeframes seem the same is, that the indicator uses all historical data.
An Example:
Let's say a chart has 1000 weekly candels and 7000 daily candles. So the last bar in weekly chart is the average of 1000 weeks and in the daily chart it's the average of 7000 days. But at the end it's the same data.
The results only vary in lower timeframes, if TradingView only shows less historical data than in larger timeframes.