Distance from Avg + avgs
This indicator plots the difference between the close and a selected moving average.
It then can apply 1-3 moving averages of the indicator itself.
One way you might use it is, say, you have a 50ma on price on your chart.
You set the Distance from Avg to use the 50ma on price to compare to close.
Then, you add a 50ma of the indicator itself. You can now compare how price
relates to its 50ma vs how the indicator relates to its 50ma. If they confirm
each other, good to go. When they dont compare (divergence), then this may
be suggesting a change. As the distance from avg is essentially a momentum
indicator, then you're comparing momentum (and its own avg) to price and
its same avg.
You could add a shorter term avg on the indicator (now 2 avgs), and look for crosses, etc.
In the settings box, the first average is the average that you want to compare the close to.
The next 3 are averages for the indicator itself.
You can experiment with combinations, and perhaps find something of value for you.
It then can apply 1-3 moving averages of the indicator itself.
One way you might use it is, say, you have a 50ma on price on your chart.
You set the Distance from Avg to use the 50ma on price to compare to close.
Then, you add a 50ma of the indicator itself. You can now compare how price
relates to its 50ma vs how the indicator relates to its 50ma. If they confirm
each other, good to go. When they dont compare (divergence), then this may
be suggesting a change. As the distance from avg is essentially a momentum
indicator, then you're comparing momentum (and its own avg) to price and
its same avg.
You could add a shorter term avg on the indicator (now 2 avgs), and look for crosses, etc.
In the settings box, the first average is the average that you want to compare the close to.
The next 3 are averages for the indicator itself.
You can experiment with combinations, and perhaps find something of value for you.