Dash is a histogram indicator, which measures the rate of price change and determines the overbought and oversold levels.
The indicator uses price extremums for the previous periods and calculates the ratio between the current price and extremums. Therefore, the only parameter is Period, which sets the number of bars to determine extremums.
A long position can be opened when the red lines of the indicator start leaving the oversold area and break the -1 level upwards. A short position can be opened when the blue lines of the indicator start leaving the overbought area and break the 1 level downwards.
- The Inputs tab of the indicator allows selecting the indicator period;
- The Colors tab allows selecting the color, width and line style of the indicator;
- The Levels tab allows selecting the numerical values for the overbought and oversold levels.
- period - the number of bars used for the indicator calculations.