Indicator for inclination of moving average

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  • 03/17/2017 at 10:22 AM #28868 quote
    victormork
    Participant
    Veteran

    Is there anyone who have or know about an indicator which can specify the inclination of moving average/tema?

    03/17/2017 at 10:41 AM #28880 quote
    Nicolas
    Keymaster
    Master

    It has already been discussed, it’s a common request since it should give an information about the trend slope. But the inclination of a moving average is nothing more than its percentage gain or loss since X periods. But you can get an error rate of the linear regression on a moving average like this:

    return R2[20](average[20])

    If the correlation is high, the moving average tends to be more similar to a straight trend line.

    Otherwise, I know there is this kind of indicator for mt4 (attached screenshot), I think I could help to translate it. Lot of people are looking for a moving average angle indicator .. I don’t know how it’s calculated and its relevancy but we could give it a try?

    03/17/2017 at 10:49 AM #28889 quote
    victormork
    Participant
    Veteran

    Thank you Nicolas! I’m mostly interested to know when it’s flat or close to flat rather when it’s pointing towards the sky. It appears as if most of the drawdowns comes from when there is no direction.

    03/17/2017 at 11:44 AM #28904 quote
    Nicolas
    Keymaster
    Master
    victormork wrote:

    It appears as if most of the drawdowns comes from when there is no direction.

    It’s often the case in trend following strategy for sure. An idea would be to switch to a mean reverting one when you accumulate losses in the same row.

    03/17/2017 at 3:05 PM #28948 quote
    victormork
    Participant
    Veteran

    True! If I use mean reverting it would be good to have an indicator to tell when the market is consolidating.

    03/17/2017 at 3:26 PM #28951 quote
    GraHal
    Participant
    Master

    Sounds interesting … it be good to outwit those drawdowns! 🙂

    I look forward to any more discussions.

    I’ll check for mean reverting code on here.

    GraHal

    03/17/2017 at 3:43 PM #28955 quote
    Nicolas
    Keymaster
    Master

    Any oscillator is a mean reverting indicator, since they are trying to spot what we call “overbought” and “oversold” areas. This is because they are calculated with their own  formulas that define what is the actual price mean. Overbought and oversold areas are only just the ceil and floor of the scale, so that’s why oscillator are of great value in ranging market, because the mean is remaining the same over a long period. If the mean is deriving too fast from the time period from which the oscillator is calculated, divergences are forming, because the overbought/oversold levels don’t have enough time to adjust to the price movement, until a new trend (price channel) appears.

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Indicator for inclination of moving average


Platform Support: Charts, Data & Broker Setup

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victormork @victormork Participant
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This topic contains 6 replies,
has 3 voices, and was last updated by Nicolas
8 years, 11 months ago.

Topic Details
Forum: Platform Support: Charts, Data & Broker Setup
Language: English
Started: 03/17/2017
Status: Active
Attachments: No files
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