This universal Parallel Lines (PL) indicator can be used both to identify trend direction and to enter the market. It is based on a combination of several moving averages. Strictly and rapidly responds to all changes.
- MA_period — moving average period.
- MA_method — moving average averaging method.
- Max – maximum number of bars for indicator drawing.
The indicator is easy-to-use and consists of two lines. When you determine trend direction: if the blue line is above the red line, the trend goes up, if conversely, it goes down.
When you enter the market: Buy, if the blue line has been below the red line, but then goes above the red line on the next bar; Sell if conversely.
Lines are drawn according to two constants 1 and 3, and that is why the indicator is easily used in EAs, as it compares positions of lines relatively to each other.