It uses two , a fast and a slow one, both configurable by the users.
The trigger of Buy and Sell Signals are calculated through the crosses:
- Buy Signals: The fast crosses over the slow . They are highlighting by a green area and a "B" label.
- Sell Signals: The fast crosses under the slow . They are highlighting by a red area and a "S" label
The trigger of Close Buy and Close Sell Signals are calculated through the close price crosses with the fast SMMA:
- Close Buy Signals: The fast crosses under the close price and at the same time the trend is , so the fast is greater than the slow . They are highlighted by a lighter green area
- Close Sell Signals: The fast crosses over the close price and at the same time the trend is , so the fast is lower than the slow . They are highlighted by a lighter red area
Few important points about the indicator and the produced signals:
- This is not intended to be a strategy, but an indicator for analyzing the conditions. It gives you the triggers depending on the real time analysis of the and prices, but not being a proper strategy, pay attention about "fake signals" and add always a visual analysis to the provided signals
- Following this indicator, the trade positions should be opened only when a cross happens. Either in this case, analyse the chart in order to see if the signals are a "weak" ones, due to "waves" around the . In these cases, you might wait for the next confirmation signals after the waves, when the trend will be better defined
- The close trade signals are provided in order to help to understand when you should close the buy or sell trades. Even in this case, always add a visual analysis to the signals, and pay attention to the areas. Sometimes, you can have the close signals in correspondence to areas: in these cases wait for the definition of the trend and eventually for the next close trade signals if they will be better defined