This indicator simply divides two moving averages and calculates the slope of the resulting curve to show when an asset's momentum is slowing down. The original idea was in a recent youtube video by Ben Cowen . His indicator didn't show the complete history of the moving average, so I wanted to try a little trick to get the moving averages at the beginning of time even when using a large moving average period. I accomplished this by counting the number off current bars using the cum() function. After the count is hit, the period will be constant. Changing the curve smoothing will smooth the actual curve. Both moving average periods should be divisible by the curve smoothing. Changing the slope smoothness will dictate when the slope is starting to slow down. Keep this high to break through the noise. Start of Red = Good time to sell Start of Green = Good time to buy
There is a weird issue with the smoothness of the line so just keep your moving averages divisible by the curve smoothing. I couldn't figure that issue out yet.
Fantastic work mate. I actually just watched Ben's video and try to search for an indicator that divided the 2 MA's and came across yours. Appreciate the help so much. Are the red and green colors strictly based on the angle of the line curve, or is there another buy/sell metric you're basing it off of? Sorry, I don't understand the code function.
The red and green colors are based on the slope of the curve. So as long as the slope is increasing the line will be green, otherwise it will turn red. That's pretty much it, no other metrics are needed.