SDL MAM is a trend detection indicator. It uses the close open relationship of each bar over a period of 20 bars and the deviations from a moving average to estimate the trend direction. SDL MAM plots the indicator line in a new pane. Green indicator line implies uptrend and red indicator line implies down trend. The SDL MAM indicator is responsive to short term price changes; thus it can produce whip saw trades. It is better used with other indicators for confirmation.
The indicator can be used to generate buy sell signals. Indicator line turning green is a Buy opportunity as down trend is reversing upward. Indicator line turning red is a Sell signal. This approach will produce many choppy trades. It can be combined with other indicators to avoid whip saws. Another approach is to Buy when the indicator line cross above zero line and Sell when indicator line cross below zero.
The parameters of the SDL MAM indicator are period – indicator calculation period, moving average method – MA type like EMA, SMA etc., and price field to use in indicator calculation. Parameters are changed in the VTL editor.
sdl_mam.zip (3.05 KB)