Hi Everyone,
I was about to embark in the development of a indicator or button, that attempts to measure detect moving average ribbon compressions, when there are multiple moving average tightly together to detect potential choppy trading period when using moving average ribbons for trading. As an example trading the Slim Ribbon, I want to detect potential compression to avoid trading the underlying.
I was thinking of subtracting the absolute value of the (fast - superfast) + (slow - fast), and take the value thru a moving average to detect compression.
As anyone coded or have a suggestion on the best approach to accomplish this?
Thanks in advance,
Laz.
I was about to embark in the development of a indicator or button, that attempts to measure detect moving average ribbon compressions, when there are multiple moving average tightly together to detect potential choppy trading period when using moving average ribbons for trading. As an example trading the Slim Ribbon, I want to detect potential compression to avoid trading the underlying.
I was thinking of subtracting the absolute value of the (fast - superfast) + (slow - fast), and take the value thru a moving average to detect compression.
As anyone coded or have a suggestion on the best approach to accomplish this?
Thanks in advance,
Laz.