moving average slope

[billyjim]

Can someone describe the equation needed to display the SLOPE (not the moving average PRICE, which I can obtain by simply placing my cursor over the MA)? It involves Calculus, which I've long since forgotten since college days 60+ years ago. :cheesy: Tnx in advance,

Bill

 

[Hoggums]

Can someone describe the equation needed to display the SLOPE (not the moving average PRICE, which I can obtain by simply placing my cursor over the MA)? It involves Calculus, which I've long since forgotten since college days 60+ years ago. :cheesy: Tnx in advance,

Bill

The slope or the angle of the line is probably not the way to go - because it all depends on the ratio between time/points you are using - for this to be effective you need a logarithmic scale on the instrument you are analysing. If you do want to use angles then you need to use inverse tangent.

Instead I would use the rate of change in a period. To work that out just subtract the MA value of the previous period with the current MA value. a value > 0 means your MAis moving up, < 0 means it's moving down. You can also apply another MA to this rate of change if you like to further smooth out the bumps.

 

[billyjim]

The slope or the angle of the line is probably not the way to go - because it all depends on the ratio between time/points you are using - for this to be effective you need a logarithmic scale on the instrument you are analysing. If you do want to use angles then you need to use inverse tangent.

Instead I would use the rate of change in a period. To work that out just subtract the MA value of the previous period with the current MA value. a value > 0 means your MAis moving up, < 0 means it's moving down. You can also apply another MA to this rate of change if you like to further smooth out the bumps.

HOGGUMS:

Thanks very much for the response. I think I will play around with that ROC you suggest -- simple, but it should work fine.

Bill