Weighted Moving Averages (WMA) Defining Trend Indicator
- Thread starter thebewb
- Start date
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Thanks! Appreciate the help. Also included is the Kaufmann wave which is a great confirmation signal as well. From top to bottom moving average differences are faster to slower. You can see how overall prevailing trend was down last night even though it tried to reverse a few times.
I would love to but I can't. Proprietary from a genius. Its really not my decision. Sorry.
But just out of curiosity, the S/R do look very similar. It's cool, I had a feeling it was that haha. I used that indicator to train my eyes a long time ago. It felt nice to see a fellow trader using it too (but smarter)
I see, you're a man of principles. That's good. We must be humble especially in this volatile period.
technicallydreaming
Member
What are the color dots meaning? I mean I get the usual concept of red downside green upside. What about the cyan, yellow, and dark blue?
Looking at the script helps but see below for a key:
Green - Means MA difference is positive and accelerating i.e., getting larger. Bright green means price is over both MAs for those periods, Light green means it is in between and dark green means it is below
Blue, Cyan and Orange - means MA difference is positive but decelerating. Cyan means price is over both MAs for that period, blue means its below and Orangemeans it is in between.
Dark Red, Light Red, and Red - Means MA difference is negative and decelerating i,e., getting larger. Dark_red means price is below both MAs, light_red means it is between and red means its is above
Yellow,Pink, and Magenta - Means MA difference is negative and accelerating i.e., getting smaller. Yellow means price is over both MAs, yellow means it is in between and magenta means it is below both MAs.
The purpose was to get a better feel for when MA crossover was going to happen. If you just had one color for positive or negative differences you could never really tell when it was about to turn other than plotting them on the upper chart which defeats the purpose of the lower study.
Green - Means MA difference is positive and accelerating i.e., getting larger. Bright green means price is over both MAs for those periods, Light green means it is in between and dark green means it is below
Blue, Cyan and Orange - means MA difference is positive but decelerating. Cyan means price is over both MAs for that period, blue means its below and Orangemeans it is in between.
Dark Red, Light Red, and Red - Means MA difference is negative and decelerating i,e., getting larger. Dark_red means price is below both MAs, light_red means it is between and red means its is above
Yellow,Pink, and Magenta - Means MA difference is negative and accelerating i.e., getting smaller. Yellow means price is over both MAs, yellow means it is in between and magenta means it is below both MAs.
The purpose was to get a better feel for when MA crossover was going to happen. If you just had one color for positive or negative differences you could never really tell when it was about to turn other than plotting them on the upper chart which defeats the purpose of the lower study.
