The indicator is useful in determining if a market is trending, and, if so, in providing entry points to initiate a trade in line with the expected directional move.
As with all the Thomas indicators, this study is based on relative price action, and so you can apply it to any market or time frame without having to change any of the default settings.
Moving Average (D-MA I):
=> Only displayed when market is trending
Bull trend: Green (moving avg Lows/Period)
Bear trend: Red (moving avg Highs/Period)
Should be applied to markets as a stop-loss, as well as a low-risk entry qualifier in conjunction with other indicators.
Moving Average (D-MA II):
=> Always displayed
outlook on the market: the 3-day moving average must be positioned above the 34-day moving average
outlook on the market: the 3-day moving average must be positioned below the 34-day moving average
Rate of Change:
A of moving-average values is calculated for both the long and short term periods / i.e. D-MA (II).
On the chart, each moving average is colored blue when their rates of change are advancing and maroon when they are declining.
A close above (or below) the moving average D-MA (I) that is confirmed by the following price bar's opening price
Materialized on chart with Flags:
- Green when bear trend ends
- Red when bull trend ends
Available Programmable alerts
- UpTrend breakout
- DnTrend breakout
- Any breakout Signal
- D-MA I Method = ( / / /RMA)
- D-MA I Period (defval=5, minval=1, maxval=20)
- D-MA I Lookback (defval=12, minval=5, maxval=20)
- D-MA I Bars Extend (defval=4, minval=1, maxval=10)
- D-MA II Method = ( / / /RMA)
- D-MA II Period fast (defval=3, minval=1, maxval=50)
- D-MA II Period slow (defval=34, minval=1, maxval=50)
- Period (defval=12, minval=1, maxval=50)
- Display D-MA I (True/false)
- Display D-MA II (True/false)
Minor fix D-MA I Lookback
Label: MATHR3E D-MA-1.1
Fix: Chart origin display
New: Display breakout option
Label: MATHR3E D-MA-1.2
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