RJ Price Aceleration on MA
This indicator calculates the DEMA over a given interval and estimates price's acceleration using this information.
Intervals where acceleration is greater than requested valued are plotted in the chart
window with different colors. Indicators uses internally the standard Moving Average indicator.
The indicator can be used with any broker. It adjusts automatically to 4 or 5 digits. Timeframe and pair are taken from the chart. The main goal is to show the moment when the price has a strong movement in any direction and help to enter the market at this moment.
The indicator can be used for manual or automated trading within an Expert Advisor. As with any technical indicator, entry signals given by this indicator should be confirmed by other methods.
For automated trading, use the following indicator buffers of the double type:
- Buffer 0 - DEMA value, is the main line of the indicator.
- Buffer 5 - trend buffer of the indicator, not plotted. (-1 down trend, +1 up trend, 0 no trend). Within this context, trend exists if acceleration is greater than input parameter Acceleration and this situation is depicted with the red and blue lines of the graph.
- Period for iMA - period to calculate the DEMA.
- Maximum number of bars to use in calculations
- Acceleration - Roughly speaking it measures the speed of the price movement in any direction, expressed in standard pips per bar. The price is considered "accelerated" over this value.