Moving averages and bands

12 Eki 2015

I coded this simple indicator based on multiple ideas shared by Tim West at his "Key Hidden Levels" chatroom.

• We have a moving average ribbon comprised of the average of the highs and lows in 10 periods. The colored space in between acts more or less like fair value and is often where price is when consolidating.
  
• Green and red triangles at the top and bottom of the screen.
  The ones at the bottom, correspond to signals obtained from a 4 period moving average of the close's slope. It helps get excellent exits for trending moves by changing color with the moving average slope.
  The ones at the top, are green while Bollinger Band Width increases, and red while it decreases, relative to the previous bar.
  
• Background color highlights when the close moves over the moving average of the highs or under the moving average of the lows, indicating a change of trend is possible, or at least a pause/consolidation.
  

The idea is to have multiple reasons to stay in a trade, which is normally very hard to do, specially when winning.

Cheers,
Ivan Labrie

Time at Mode FX