Moving Average Cloud
Moving Average Cloud (MAC) is designed to help you capture and trade the trend. The idea behind this indicator can be explained in the next steps:
- Draw a fast moving average Envelope.
- Draw a slow moving average Envelope.
- The MAC Upper Band is the highest value between the high of both Envelopes.
- The MAC Lower Band is the lowest value between the low of both Envelopes.
- The MAC Histogram Cloud fills the distance between two bands to show you change in direction.
- Blue Cloud indicates uptrend while Red Cloud indicates downtrend.
- Suggested Entry arrows appear on breakout of short term Don-chain channel in the direction of MAC Clouds.
How to use MAC
- Use MAC Clouds as a filter to help you identify trend direction.
- Trade with your usual trading tools in the direction of MAC Clouds only to eliminate false signals as much as possible.
- Use suggested entry arrows to help you finding strong trending points to start from.
- Show or hide option for MAC Clouds and signals.
- MAC Cloud is colored depending on trend direction.
- Buy, Sell arrows to help identifying trend signals.
- Sound, email alerts depending on user choice.
- Well-designed style that user can control.
- Fast_MA - fast Moving Average Envelope period.
- Slow_MA - slow Moving Average Envelope period.
- MA_Method - choose between moving average method used in calculation.
- Show_Cloud - show or hide cloud options.
- Show_Signal - show or hide arrows options.
- Breakout_Filter - number of bars. If the last complete bar on a chart breaks out, a signal arrow appears with an alert sound and a message.
- Alerts - choose to use or stop alert sound and message.
I hope you find MAC a good investment tool for you.