snappyfrog
711 posts
msg #161160
- Ignore snappyfrog |
6/22/2024 6:47:12 PM
More info:
Why use moving average slope?
The moving average slope can tell you the momentum of the moving average relative to some time in the past. That is, when the moving average is increasing in value, staying flat, or decreasing. This, in turn, tells you the strength of the trend.
Also, when using two MAs of different periods to indicate the short-term and long-term trends, their slopes can show you when both the short-term and long-term trends are in the same direction, which presents a better and less-risky time to enter a trade in that direction.
How to use the moving average slope
Ordinarily, when using a moving average indicator, you can visually gauge the slope of the moving average — at least, you can see whether the slope is upward (uptrend), flat (sideways), or downward (downtrend). In fact, if you are observant, you can see when the slope is getting steeper (stronger trend) or less steep (declining trend).
However, you can code or pay someone to code a custom indicator that measures slope and displays it as an indicator line on the chart. This can make the use of moving average slope easier for you.
How can you use the slope of a moving average in trading?
There are many ways you can use the slope of a moving average in guiding your trading decisions. The simplest one is to find the direction of the trend when using a single moving average. In this case, if the slope is upward, the market is likely in an uptrend, and if it is downward, the market is likely in a downtrend. When the slope is flat, the market is probably range-bound.
You can also employ the strategy of the relative slope by using two moving averages of different periods to show the long-term and short-term trends. In this case, when the slope of both moving averages is upward, it means that both the short-term and long-term trends are in the same direction: upward. So, it is safe to go long. If the long-term MA Slope is upward, but the short-term one is downward, it may be best to wait for both to align before you make a trade.
Similarly, if both long-term and short-term MA slopes are downward, it may be safe to take a short position in the market.
|
styliten
294 posts
msg #161161
- Ignore styliten |
6/22/2024 9:00:55 PM
If you’d like, you can add the following at the end:
draw clri(clri(ma(5) multiply by 1.750, 5) minus clri(ma(5) 10 days ago multiply by 0.750, 5), 10) on plot price
draw clri(clri(ma(5) multiply by 1.625, 5) minus clri(ma(5) 10 days ago multiply by 0.625, 5), 10) on plot price
draw clri(clri(ma(5) multiply by 1.500, 5) minus clri(ma(5) 10 days ago multiply by 0.500, 5), 10) on plot price
draw clri(clri(ma(5) multiply by 1.375, 5) minus clri(ma(5) 10 days ago multiply by 0.375, 5), 10) on plot price
draw clri(clri(ma(5) multiply by 1.250, 5) minus clri(ma(5) 10 days ago multiply by 0.250, 5), 10) on plot price
draw clri(clri(ma(5) multiply by 1.125, 5) minus clri(ma(5) 10 days ago multiply by 0.125, 5), 10) on plot price
draw clri(clri(ma(5) multiply by 1.001, 5) minus clri(ma(5) 10 days ago multiply by 0.001, 5), 10) on plot price
draw clri(clri(ma(5) multiply by 0.875, 5) minus clri(ma(5) 10 days ago multiply by -.125, 5), 10) on plot price
draw clri(clri(ma(5) multiply by 0.750, 5) minus clri(ma(5) 10 days ago multiply by -.250, 5), 10) on plot price
draw clri(clri(ma(5) 10 days ago multiply by 1.750, 5) minus clri(ma(5) multiply by 0.750, 5), 11) on plot price
draw clri(clri(ma(5) 10 days ago multiply by 1.625, 5) minus clri(ma(5) multiply by 0.625, 5), 11) on plot price
draw clri(clri(ma(5) 10 days ago multiply by 1.500, 5) minus clri(ma(5) multiply by 0.500, 5), 11) on plot price
draw clri(clri(ma(5) 10 days ago multiply by 1.375, 5) minus clri(ma(5) multiply by 0.375, 5), 11) on plot price
draw clri(clri(ma(5) 10 days ago multiply by 1.250, 5) minus clri(ma(5) multiply by 0.250, 5), 11) on plot price
draw clri(clri(ma(5) 10 days ago multiply by 1.125, 5) minus clri(ma(5) multiply by 0.125, 5), 11) on plot price
draw clri(clri(ma(5) 10 days ago multiply by 1.001, 5) minus clri(ma(5) multiply by 0.001, 5), 11) on plot price
draw clri(clri(ma(5) 10 days ago multiply by 0.875, 5) minus clri(ma(5) multiply by -.125, 5), 11) on plot price
draw clri(clri(ma(5) 10 days ago multiply by 0.750, 5) minus clri(ma(5) multiply by -.250, 5), 11) on plot price
|
snappyfrog
711 posts
msg #161172
- Ignore snappyfrog
modified |
6/30/2024 2:08:03 PM
This is the code I finalized. I am going to use this on the 3 stocks in the symlist. The
intention is for fast 2 -5 day trades up and down for 1% - 5% gains on the stocks.
I trade options and they are quite cheap on these 3, so the intention is to use the options
to leverage my gains. Bullish gains on T came out to 1.44% on 5 day trades. With options
I hope to be able to leverage that up to 8% - 10% on trades.
Also, with options I am not limited to only bullish trades, so I will short via options also. This
will allow me to be in all 3 stock trades to the upside and downside at all times, or at least
when I feel it has the potential to move.
The oscillators below the chart are only to help me gauge strength and weakness while in the trade.
|