Lotus indicator combines the features of both trend indicators and oscillators allowing you to track the smoothed price change rate, as well as trend strength and change.
The uptrend is shown as a green indicator line, while a downtrend is displayed in red.
A long position can be opened when the indicator breaks the zero level from below.
A short position can be opened when the indicator breaks the zero level from above.
An opposite signal of the indicator can be used for exiting positions.
You should use a tight stop loss, because the indicator color and direction can suddenly be changed.
The Inputs tab allows you to select:
- Moving Average smoothing period
- Moving average smoothing method (Simple, Exponential, Smoothed, Linear weighted)
- Applied price (Close, Open, High, Low, Median, Typical, Weighted)
- Shift of the Moving Average from bar to bar at a distance of Shift.
The Colors tab allows you to select the line color and width.
- Period - period of the moving average;
- Method - method of smoothing the moving average;
- Applied Price - applied price;
- Shift - moving average shift.
Note: If Shift is less than 1 or more than Period, the following alert appears: "Incorrect Shift value. The indicator will use the value of Shift = Period."