UM-MA-Directional-Colors

20 apr

UM-MA-DIRECTION Indicator

Indicator Description
The UM-MA-Direction indicator adds a few more features to a traditional Moving Average indicator. The primary difference is color change upon MA direction. The indicator is green when trending higher and red when trending lower. Additionally, a MA of the MA can be configured. This gives a smoothing effect of the indicator. The indicator also includes a fill between the configured moving average and the moving average of the moving average.

User Configuration
All parameters and colors are user-configurable. While the default is an EMA (Exponential Moving Average), of 8 with a EMA of the EMA set to 5, both can be configured or disabled to the user's liking. The default trending and fill colors are red for trending lower and green for trending higher. The type of MA used is also user configurable with EMA - Exponential Moving Average set as the default.

Alerts
Alerts can be set for Bullish (red to green) color changes or Bearish (green to red) color changes by right-clicking the indicator and selecting "Add Alert."

Recommended Usage
Use this indicator to better determine trend direction over traditional Moving Averages. If you use several MAs, add this indicator to the chart as many times as you like with different settings and configurations.

Author Recommended Settings
I use an 8 period EMA with a 5 period EMA of the EMA on daily and hourly charts. I also use the 233 EMA with no fill and no EMA of EMA on the 3 minute chart. Both 8 and 233 are Fibonacci numbers in case you are wondering. I have also observed there is a fractal nature (recurring pattern within a recurring pattern) to the EMAs. An 8 period EMA color transition on the 1 hour chart is close to a 233 period color transition on the 3 minute chart as far as direction changes. The 233 EMA on the 3 minute chart was borrowed from the "Perfect Storm Trading" book by Wendy and Kim Kirkland which I highly recommend.