M - N
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Last updated
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How to access the studies in MotiveWave:
Go to the top menu, choose Study>Study Group>Study Name
or Go to the top menu, choose Study>All Studies> Start typing in the study name until you see it appear in the list> Click on the study name> Click OK.
The MAMA or Mother Of Adaptive Moving Averages was authored by John Ehlers. The MAMA uses the current price, three previous prices, several feedback sequences, a few math functions and factors, and some more feedback for its final calculation. A signal line, called the FAMA which is derived from the MAMA, is also given. The user may change the input (midpoint) and the fast and slow factors. This indicator’s definition is further expressed in the condensed code given in the calculation below.
See also article by John Ehlers
How To Trade Using MAMA
If the MAMA crosses below the FAMA a sell signal will be generated. Conversely, if the MAMA crosses above the FAMA a buy signal will be given.
Calculation
//input = price, user defined, default is midpoint //fast = user defined, default is .5 //slow = user defined, default is .05 //prev = previous, index = current bar number
MA Difference displays the difference between two moving averages as a graph. If the first moving average is above the second the value will be positive, otherwise the value will be negative. The user may change the inputs (close), methods (SMA), shift amounts and period lengths. This indicator’s definition is further expressed in the condensed code given in the calculation below.
No trading signals are calculated for this indicator.
//input = price, user defined, default is close //method = moving average (ma), user defined, default is SMA //period1 = user defined, default is 10 //shift1 = user defined, default is 0 //input2 = price, user defined, default is close //method2 = moving average (ma), user defined, default is SMA //period2 = user defined, default is 5 //shift2 = user defined, default is 0 //index = current bar number
The MA High Low study displays two lines: a moving average of the highest high over a given period and the lowest low over a given period. The user may change the method (WMA), period and shift lengths. This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using MA High Low
No trading signals are calculated for this indicator.
Calculation
//method = moving average (ma), user defined, default is WMA //highPeriod = user defined, default is 14 //highMAPeriod = user defined, default is 14 //highShift = user defined, default is 0 //lowPeriod = user defined, default is 14 //lowMAPeriod = user defined, default is 14 //lowShift = user defined, default is 0 //index = current bar number
Moving Average Ribbon (MA Ribbon) combines multiple moving average lines (MAs) with different periods to smooth out the price movements, using the given method and period. This method provides illustrations for the direction and the strength of the trend.
Though the SMA is often used to create a ribbon, MotiveWave™ provides various MA options to support users' decisions. There are other components that users can adjust to their preference: Period (bars), Step, and MA Count.
The MA Count is the number of MA lines in the ribbon, usually set at 6 lines. The period (bars) shows the time frame or period length. The step determines the distance between the lines. Each Moving Average in the series will increment the period using the step.
For example, in the setting below, the given period is 2, which means each line will take into consideration the past 2 bars of the price data. For the step that is set to 2, it indicates the spacing between two subsequent lines, and the lines will be computed as 2,4,6,8,10 ... periods.
The period (bars) affects the sensitivity of the ribbon. With shorter periods (2, 5, or 10, etc.), the ribbon is closer the price data, more sensitive to changes and, therefore, reacts quickly to the price movement. Longer periods (such as 100, 200, or 250, etc.) make the ribbon move farther from the price line and, therefore, are less sensitive and respond slower to changes, but provide broader views of the market condition with less noise and false signals.
The step influences the appearance and distribution of the ribbon, where smaller values result in tighter ribbon lines and larger values create wider lines.
How to trade using MA Ribbon
There are several ways for users to utilize the MA Ribbon:
First, the MA Ribbon can help spot bullish and bearish trends through crossovers between the prices and the ribbon. If the prices cross above the MA series, it might indicate bullish signals and, therefore, opportunities for buying. Conversely, if the prices fall below the MA series, it suggests bearish trends - users can consider selling. If the ribbon twists in one spot, a change in trend direction may occur, providing potential opportunities to buy or sell.
Secondly, the MA Ribbon can help identify overall trend directions. If the ribbon rises and the prices continue to reach above it, this is a strong sign of an uptrend. Conversely, a downtrend can be confirmed if the ribbon is moving down and the prices keep falling below it.
Next, the width of the ribbon indicates trend strength. A wider ribbon illustrates a stronger trend, while a narrower ribbon may suggest the trend has become weaker. In addition to a ribbon's width, the slope of the ribbon might provide more reliability in decision-making. To be specific, a ribbon that is moving upward with a consistent width indicates a strong bullish trend, therefore, it might be a good time to buy. In contrast, if the ribbon is stably wide and going downward, it suggests a bearish trend and an opportunity to sell. Meanwhile, a narrow ribbon indicates weak market momentum, therefore, traders should be careful in buy and sell activities.
Finally, the MA Ribbon when set to long-term periods and steps, can act as support and resistance levels. In a downtrend, if the price keeps bouncing off the upper boundary of the ribbon, this upper line will act as resistance and there might be an opportunity to sell. In an uptrend, if the price keeps bouncing back from the bottom line, this line will act as the support level, which presents a signal to buy.
Market Exchanges indicator displays the past and future, opening and closing times of a user-selected market exchange. The bar type must be linear and the interval must be less than 1 day. In case the components don't show up on the chart, Enable the "Show Extended Data" option. Although many market holidays are used in the calculations, not all holidays in all exchanges are considered. However, all markets are assumed to be closed on Saturdays, Sundays, Christmas and New Year's. The user can select a market exchange, whether to display the open-close tag and the exchange letters, the font, and the line and text colors. This indicator’s definition is further expressed in the code given below.
How To Trade Using Market Exchanges
Market Exchanges may assist in trading decisions, but no trading signals are generated by this study, expressed in the code given below.
The Martin Ratio or Ulcer Performance Index was authored by Peter G. Martin. The higher the Martin Ratio the better the instrument’s performance. The main ingredients are the current price and a prior price which are adjusted with the user-defined safe return. An average and the Ulcer Index are taken; and the Martin Ratio is their quotient. The user must select linear bars but may change the input (close), period length and a safe return value. This indicator’s definition is further expressed in the condensed code given in the calculation below.
See Ulcer Index for code See also Peter Martin’s page
The Martin Ratio may be used to evaluate an instrument’s performance. No trading signals are calculated.
//input = price, user defined, default is close //period = p1, user defined, default is 30 //safe = safe return percentage, user defined, default is 2 //av = average, pow = power //sma = simple moving average //index = current bar number //sqrt = square root
The Market Facilitation Index (MFI) was authored by Bill Williams. Important cases to look for:
1. MFI Up and Volume Up – the movement has begun and picks up speed.
2. MFI Down and Volume Down – market participants are no longer interested.
3. MFI Up and Volume Down – market is not supported by clients.
4. MFI Down and Volume Up – battle between bears and bulls. No user inputs are required for this study. This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using the Market Facilitation Index
No trading signals are calculated for this indicator.
Calculation
//index = current bar number
The McClellan Oscillator was created by Sherman and Marian McClellan in 1969. This oscillator is a breadth indicator based on two moving averages of Net Advances. Net Advances = Advances - Declines, where Advances are numbers of stocks that closed higher and Declines are those that closed lower.
McClellan Oscillator value = (19-day EMA of Net Advances) - (39-day EMA of Net Advances),
where EMA is the Exponential Moving Average;
19-day EMA is a short-term or Fast EMA that represents recent market activities,
39-day EMA is a long-term or Slow EMA that shows general market movements.
McClellan Oscillator values reflect market capital conditions. When the value is positive (the advancing issues are higher than the declining issues), it indicates a growing market capital and, therefore, a signal for a bullish trend. Conversely, the value shows a decrease in the market capital and signals bearish conditions when the value is negative (the advancing issues are lower than the declining issues). In addition, extreme values can point out overbought (extremely positive) or oversold (extremely negative) conditions.
Click here for more information about McClellan Oscillator.
How to trade using the McClellan Oscillator
MotiveWave™ offers two graphs to help illustrate the indicator: one shows the histogram and the other shows the Fast EMA and Slow EMA lines.
The histogram at the bottom illustrates how the McClellan Oscillator fluctuates around the zero line. The moment the oscillator moves above the zero line suggests bullish signals or buying opportunities. Meanwhile, the moment the oscillator moves below the zero line indicates bearish signals or selling opportunities.
Additionally, extremely high or low values can be used to identify market conditions (overbought/oversold). When the value is highly positive, the market is in overbought condition and traders should consider selling. Conversely, when the value is highly negative, the market is experiencing oversold condition, and traders should consider buying.
Users can also use the crossover graph at the top to recognize buy and sell opportunities. When the Fast MA line crosses below the Slow MA line, sell signals will be generated. Meanwhile, if the Fast MA line crosses above the Slow MA line, buy signals will be given.
McClellan Summation Index displays the cumulative sum of the McClellan Oscillator. Since this index is the accumulation of the daily McClellan Oscillator values, it provides a long-term perspective. Compared to the Oscillator, the Index is slower in response but smoother with less noise, therefore, helping traders focus on the overall trends and highlight major turning points in the market.
How to trade using McClellan Summation Index
Firstly, a positive index indicates a bullish market, therefore, suggesting buying opportunities. Conversely, a negative index gives a signal of a bearish market, which offers selling opportunities.
Next, the thresholds of this index are +1000 and -1000 with zero line dividing them. When the index consistently stays above +1000, it shows a sign of a strong bull market. In contrast, when the index is consistently below -1000, it indicates a strong bear market.
Another way to use the index for identifying major trend shifts is by looking at the crossover of the McClellan Summation line and the zero line. If the index line crosses above the zero line, it confirms a bullish phase, and traders might consider going long. If the index line falls down the zero line, the bearish phase might start soon and the market trend might decline, which indicates that traders might consider existing long positions or going short
The McClellan Summation Index can be used in conjunction with other indicators to confirm market strength and trend directions.
John R. McGinley is the author of the McGinley Dynamic Indicator. It is a moving average (MA) that focuses on improving the delay in response to market movements, which is a big issue with traditional MAs. By applying a smoothing factor, the indicator can catch up with the speed of the market (dynamic). The McGinley Dynamic Indicator is highly responsive, self-adjusted, and generates less noise and false signals.
Click here for more information
How to trade using McGinley Dynamic Indicator
The McGinley Dynamic Indicator is a great tool to be used in conjunction with other technical analyses to confirm signs, such as RSI, MACD, or other volume indicators.
The Median Average Adaptive Filter (MAAF) was authored by John Ehlers. The MAAF requires the current price and three previous prices, some averaging, some while loop for an alpha calculation and then a final feedback to fill its calculation. The user may change the input (midpoint) and a threshold value. This indicator’s definition is further expressed in the condensed code given in the calculation below.
Click here for more information on MAAF
The Median Average Adaptive Filter is a trend indicator and may be used in conjunction with other studies. No trading signals are calculated.
//input = price, user defined, default is midpoint //th = threshold = user defined, default is .002 //median = function, returns price at middle of period //prev = previous, index = current bar number
Mass Index by Donald Dorsey uses highs, lows and exponential moving averages to indicate upcoming price reversals. The key event is called a reversal bulge, which occurs when the Mass Index rises above the 27 line and then falls below 26.5. A trend indicator, which is an EMA of the close, is used to determine whether the signal is buy or sell. The user may change the input (close), methods(EMAs), period lengths and guide values. This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using Mass Index
Mass Index is used with Mass Index Trend to determine a buy or sell signal. The first condition (C1) for either signal is dependant on the previous path of Mass Index. It must have crossed above the top guide set at 27 and then have fallen through the bottom guide set at 26.5. A sell signal is given when C1 AND an up trend. Conversely, a buy signal is generated when C1 AND a downtrend.
//key = price (user defined, default is closing price) //method = moving average (user defined, default is EMA) //period1 = user defined, default is 21 //period2 = user defined, default is 21 //period3 = user defined, default is 25 //trendPeriod = user defined, default is 9 //trendMethod = moving average (user defined, default is EMA) //LT = less than, index = current bar number //MT = more than
The Mobility Oscillator was authored by Mel Widner, Stocks and Commodities Magazine 02/1996. This Indicator uses the highest highs, lowest lows, loops within loops, many if ands or equals, and even a prior close to arrive at its oscillator value. It uses a price distribution function and may be useful in predicting price mobility. The user may change the period lengths. This indicator’s definition is further expressed in the condensed code given in the calculation below.
Mobility Oscillator may be used in conjunction with other indicators. No trading signals are given.
//period = user defined, default is 14 //m = user defined, default is 10 //pdf = price distrubition function //index = current bar number, LOE = less or equal //MOE = more or equal
Momentum measures the price movement over a user-defined time period. It is calculated as a ratio of the current bar’s price to the price several (N) bars ago. Formula: MOMENTUM = CLOSE(i) / CLOSE(i-N)*100. The user may change the input (close) and period length. This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using Momentum
No trading signals are calculated for this indicator.
Calculation
//input = price, user defined, default is close //period = user defined, default is 14 //index = current bar number
The Money Flow Index (MFI) is similar to the Relative Strength Index in how it is calculated and interpreted. MFI is considered to be more rigid since it is volume-weighted and illustrates the flow of money in and out of an instrument. The user may change only the period length. This indicator’s definition is further expressed in the condensed code given in the calculation below.
Click here for more information
How To Trade Using Money Flow Index
Adjust the top and bottom guides to control the quantity and quality of the trading signals. If the MFI crosses above the top guide a sell signal will be generated, Conversely, if the MFI crosses below the bottom guide a buy signal will be given.
Calculation
//period = user defined, default is 20 //LT = less than, LOR= = less or equal //index = current bar number
The Moon Phases study displays moon phases as lines on the price graph. Moon phases are based on GMT time. The user may choose to display new and quarter moons, and may alter the show time, 24-hour clock, and show top, bottom options. The defaults are shown below.
Moon Phases! No trading signals are calculated.
//show new moons, user defined, default is false //show quarter moons, user defined, default is false //show time, user defined, default is true //show 24 hour clock, user defined, default is false //show top, user defined, default is true //show bottom, user defined, default is true
The Move Tracker (MT) was authored by Omega Research 1996. The MT uses the difference between price and previous price for its main line, and for the signal line, it uses the difference between MT and previous MT. The user may only alter the input (close). This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using Move Tracker
Although a signal line is plotted, no trading signals are calculated for this indicator.
Calculation
//input = price, user defined, default is close //prev = previous, sig = signal //index = current bar number
The Moving Average Adaptive Filter (MAAF) was authored by Perry Kaufman in the Stocks and Commodities Magazine 03/1998. The MAAF uses price, previous price and a prior price in a series of mathematical manoeuvres including feedback to arrive at its final form. The user may change the input (close), period length and filter value. This indicator’s definition is further expressed in the condensed code given in the calculation below.
Moving Average Adaptive Filter may be used in conjunction with other indicators. No trading signals are given.
//input = price, user defined, default is close //period = user defined, default is 10 //filter = user defined, default is .15 //prev = previous, abs = absolute value //pow = power, index = current bar number //std = standard deviation
The Moving Average Adaptive Q (MAAQ) was authored by Perry Kaufman in the Stocks and Commodities Magazine 06/1995. The MAAQ uses price, previous price and a prior price in a series of mathematical manoeuvres including feedback to arrive at its final form. The user may change the input (close) and the period length. This indicator’s definition is further expressed in the condensed code given in the calculation below.
Moving Average Adaptive Q may be used in conjunction with other indicators. No trading signals are given.
//input = price, user defined, default is close //period = user defined, default is 10 //prev = previous, abs = absolute value //pow = power, index = current bar number //lrv[0] = a in the line equasion y = a + mx
Moving Average Convergence Divergence (MACD) is a popular technical analysis that gives users insights into trend direction, potential reversals and divergences, and trading opportunities. It was authored by Gerald Appel in the 1960s, and in 1986, Thomas Aspray added a histogram. There are three main components in a MACD chart: MACD Line, Signal Line, and a histogram. The MACD shows the difference between a fast moving average (usually a 26-period EMA) and a slow moving average (typically a 12-period EMA). It is often used to indicate changes in market trends. The Signal Line is another short-term moving average of the MACD line (usually a 9-period EMA), used to smooth out the MACD, and the crossovers between MACD and Signal Lines might signal the buy or sell opportunities. The histogram represents the difference between the MACD and Signal Line.
Click here for more information.
How To Trade Using the Moving Average Convergence Divergence (MACD)
The user may change the input (close), methods, and period lengths. The MACD may be used as a trend-changing indicator. A buy signal will be generated if the MACD line (white) crosses above the Signal line (red). Conversely, a sell signal will be given if the MACD crosses below the Signal line.
Traders can identify potential divergences based on the MACD. When the price makes higher highs but the MACD makes lower highs, it might be a bearish divergence and the trend might reverse from up to the downside. Conversely, when the price makes lower lows but the MACD shows higher lows, it might indicate a bullish divergence and a reversal to the upward direction.
The MACD might be used in conjunction with other indicators for more accurate readings. For example, traders usually combine the RSI to identify overbought/oversold conditions, along with the MACD's ability to show trend momentums or reversals.
Calculation
This indicator’s definition is further expressed in the condensed code given in the calculation below.
//input = price, user defined, default is close //method = moving average (ma) user defined, default is EMA //signal method = moving average (ma) user defined, default is SMA //period1 = user defined, default is 12 //period2 = user defined, default is 26 //signal period = user defined, default is 9 index = current bar number
The Moving Average Cross displays a fast and a slow-moving average (MA). A signal arrow is shown when the two MAs cross. An up arrow is displayed if the fast MA crosses above the slow MA and a down arrow is given if the fast MA crosses below the slow MA. The user may change the inputs (close), methods (EMA) and period lengths. This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using Moving Average Cross
If the fast MA crosses above the slow MA, a buy signal will be generated. Conversely, if the fast MA crosses below the slow MA,a sell signal will be given.
Calculation
//fastInput = price, user defined, default is close //slowInput = price, user defined, default is close //fastMethod = moving average (ma), user defined, default is EMA //slowMethod = moving average (ma), user defined, default is EMA //fastPeriod = user defined, default is 10 //slowPeriod = user defined, default is 20 //index = current bar number
Moving Average Displaced Envelope by Omega Research. These envelopes are calculated by multiplying percentage factors with their displaced exponential moving average (EMA) core. The user may modify the input (close), method (EMA), periods, factors and displacements. This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using Moving Average Displaced Envelope
Adjust the envelopes' percentage factors to control the quantity and quality of the signals. If a previous high goes above the envelope, a sell signal is generated. Conversely, if the previous low goes below the envelope, a buy signal is given.
Calculation
//input = price, user defined, default is closing price //method = moving average, user defined, default is EMA //period = user defined, default is 9 //perAb = percent above = user defined, default is .5 //perBl = percent below = user defined, default is .5 //disp = displacement = user defined, default is 13 //index = current bar number //ma = moving average, prev = previous
The Moving Average Envelope adds a parallel line above and below a moving average using a given percentage of the price. These lines can be useful for identifying short-term price fluctuations. The user may change input (close), method (EMA), period, shift and deviation values. This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using Moving Average Envelope
Adjust the envelopes' percentage factors to control the quantity and quality of the signals. If a previous high goes above the envelope, a sell signal is generated. Conversely, if the previous low goes below the envelope, a buy signal is given.
Calculation
//input = price, user defined, default is close //method = moving average (ma), user defined, default is EMA //period = user defined, default is 20 //shift = user defined, default is 0 //topDev = percent, user defined, default is 2.5 //bottomDev = percent, user defined, default is 2.5 //LT = less than, LOE = less or equal
The Moving Average of Oscillator (OSMA) is the difference between an oscillator and its smoothed value. The MACD is used as the oscillator and the MACD signal is used as the smoothed value. Each bar is calculated as: osma = macd – signal. The user may change the input (close), methods and period lengths. This indicator’s definition is further expressed in the condensed code given in the calculation below.
Click here for more information. See also MACD.
How To Trade Using the Moving Average of Oscillator
The Moving Average of Oscillator (OSMA) may be used as a trend-changing indicator. No signals are calculated for this study. Calculation
//input = price, user defined, default is close //method = moving average (ma) user defined, default is EMA //signal method = moving average (ma) user defined, default is SMA //period1 = user defined, default is 12 //period2 = user defined, default is 26 //signal period = user defined, default is 9
Moving Average Support Resistance was authored by Dennis L. Tilley in the Stocks and Commodities Magazine 09/1998. A simple moving average is multiplied and divided by a support resistance factor. The user may change the input (close), method (SMA), period length and factor. This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using Moving Average Support Resistance
Adjust the support/resistance factor to control the quantity and quality of the trading signals. If the price is above the top band a sell signal will be generated. Conversely, if the price is below the bottom band a buy signal will be given.
Calculation
//input = price, user defined, default is closing price //method = moving average = ma, user defined, default is SMA //period = user defined, default is 10 //fac = percent factor = user defined, default is 2 //index = current bar number
The Multi Level Indicator was authored by Vladimir Vladimirovich Voznjuk in the Stocks and Commodities Magazine Sept 2012. Use 1-minute price bars only. The close minus open of the 1-minute price bars are compared to a signal level close minus open time frame. The user may change the input (5 minute) and factor (10000). This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using the Multi Level Indicator
Adjust the top and bottom guides to control the quantity and quality of the trading signals. When the z value rises above the top guide a sell signal will be generated. When the z value falls below the bottom guide a buy signal will be given.
Calculation
//input = tFrame, user defined, default is 5 Minute //factor = user defined, default is 10000 //i = current bar number, prev = previous
Multi Vote OnBalance Volume was authored by Barry M. VcVicar. Both the current and previous, highs, lows and closes, step into the voting booth. The ballot is for volume. If their current is greater than their previous, their vote is a plus, otherwise a minus. The votes are tallied, multiplied by the volume and together with feedback the MVO histogram is plotted. This indicator’s definition is further expressed in the condensed code given in the calculation below.
See also TFS Volume Oscillator
How To Trade Using Multi Vote OnBalance Volume
The Multi Vote OnBalance Volume may be used in conjunction with other indicators. No trading signals are calculated.
Calculation
//prev = previous, index = current bar number
MWDX Average is a type of Exponential Moving Average. The user may change the input (close) and factor (.2). This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using MWDX Average
MWDX Average may be used in conjunction with other indicators. No trading signals are given.
Calculation
//input = price, user defined, default is close //fac = user defined, default is .2 //prev = previous, index = current bar number
Narrow Sideways Channel by Omega Research 1997 uses Standard Deviation in its calculation. Two paths are plotted NSC1, NSC2. The channels are calculated by adding/subtracting a multiple of Standard Deviation (stdDev) from a simple moving average. The user may modify the input (close), method (SMA), periods (14), stdDev factor (3) and range (0). This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Narrow Sideways Channel
The high minus low must be greater than the range (set by user). If a high goes above the top channel a sell signal is generated. Conversely, a buy is given if a low goes below the bottom channel.
Calculation
//input = price (user defined, default is closing price) //method = moving average (user defined, default is SMA) //period = user defined, default is 14 //range = user defined, default is 0 //LT = less than, MT = more than //LOE = less or equal, MOE = more or equal //index = current bar number
Negative Volume Disparity Indicator (NVDI) was authored by Phillip C. Holt, Stocks and Commodities Magazine 06/1996. The NVDI uses Bollinger Bands®, price and previous price, volume and a previous volume to create its plot. A signal line, a moving average of the NVDI, is also plotted. The user may change the input (close), method (SMA), period lengths and number of standard deviations. This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using Negative Volume Disparity Indicator
Adjust the top and bottom guides to control the quantity and quality of the trading signals. If the nvdi is above the top guide and crosses below the ma a sell signal will be generated. Conversely, if the nvdi is below the bottom guide and crosses above the ma a buy signal will be given.
//input = price, user defined, default is closing price //method = moving average = ma, user defined, default is SMA //period1 = user defined, default is 33 //period2 = user defined, default is 4 //noStd = number of Standard Deviations = user defined, default is 2 //prev = previous, bb = bollinger bands //bb[0] = bb[top], bb[1] = bb[bottom] //index = current bar number
The Negative Volume Index by Norman Fosback is a good indicator of bullish trends. It only considers bars that have a lower trading volume than their previous bar. This indicator’s definition is further expressed in the condensed code given in the calculation below.
Click here for more information.
How To Trade Using Negative Volume Index
The Negative Volume Index is meant as a bullish trending indicator to aid other studies. No trading signals are given.
Calculation
//index = current bar number
The New Market Paradigm Contraction was authored by Walter T. Downs in the Stocks and Commodities Magazine 06/1998. This indicator uses the current and previous Bollinger Bands®, along with some conditional statements, to plot its paths. The user may change the input (close), period length and standard deviation values. This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using New Market Paradigm Contraction
Adjust the Standard Deviation and period length to control the quantity and quality of the trading signals. If the price is above the top band, a sell signal will be generated. Conversely, if the price is below the bottom band, a buy signal will be given.
Calculation
//input = price, user defined, default is close //period = user defined, default is 28 //sdUp = standard deviation up, user defined, default is 2 //sdDn = standard deviation down, user defined, default is 2 //bb = bollinger bands, sma = simple moving average, prev = previous //bb[0] = bb top, bb[1] = bb bottom, bb[2] = bb sma //index = current bar number
The New Market Paradigm Expansion was authored by Walter T. Downs in the Stocks and Commodities Magazine 06/1998. This indicator uses the current and previous Bollinger Bands®;, along with some conditional statements, to plot its paths. The user may change the input (close), period length and standard deviation values. This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using New Market Paradigm Expansion
Adjust the Standard Deviation and period length to control the quantity and quality of the trading signals. If the price is above the top band, a sell signal will be generated. Conversely, if the price is below the bottom band, a buy signal will be given.
Calculation
//input = price, user defined, default is close //period = user defined, default is 28 //sdUp = standard deviation up, user defined, default is 2 //sdDn = standard deviation down, user defined, default is 2 //bb = bollinger bands, sma = simple moving average, prev = previous //bb[0] = bb top, bb[1] = bb bottom, bb[2] = bb sma //index = current bar number
Net Lines is a reversal pattern indicator. Traders use this indicator to observe successive price movements by drawing Net Lines as a preference for potential buy or sell signals. After a chosen consecutive up or down bars (Time Out - usually set to 3), a Net Line is drawn at the high or low of the first bar in the sequence. The penetration of this line create a buy or sell signal.
This buy or sell condition is active until the Time Out is exceeded. The Time Out is used for risk control by setting a predefined period or bars where the signals are valid. This helps users avoid irrelevant signals after an extended period.
Any sidebars (lower highs and higher lows than the preceding valid bar) will be ignored.
How to trade using Net Lines indicator
After a downtrend, if the price reaches above the Net Line, a buy signal will be generated. This suggests a potential reversal from a downtrend to an uptrend. After an uptrend, if the price drops below the Net Line, a sell signal will be given. This indicates a trend reversal from upward to downward.
