Daily Delta Trend
Daily Delta Trend is a useful exponential moving average of the 50 day and 200 day simple moving average. In the first Daily Delta Trend I realized that the simple moving averages were pretty choppy as they were buy then sell over short period of times. So I thought taking an average of another average would smooth my results and give it buy and sell signals more clearly. In chart 1, you can see that it is choppy, and in chart 2 is much smoother.
The way I've been interpreting the chart is to trade it only when the 50-day average (GREEN) Trades with 200-day average (RED). For example, when red and green are both >0 = Buy and both <0 = Sell.
Just from a little of pretesting, I was able to find solid trades from multiple pairs.
DISCLAIMER, I have not actually traded this indicator as I just wrote it for the past few hours, But I thought it was interesting and maybe I might trade it. Feel free to play with it and comment back :P
The way I've been interpreting the chart is to trade it only when the 50-day average (GREEN) Trades with 200-day average (RED). For example, when red and green are both >0 = Buy and both <0 = Sell.
Just from a little of pretesting, I was able to find solid trades from multiple pairs.
DISCLAIMER, I have not actually traded this indicator as I just wrote it for the past few hours, But I thought it was interesting and maybe I might trade it. Feel free to play with it and comment back :P
// 4H Delta//Weekly Delta // By TheBullTrader-Use Daily Time frame // Trade Bullish when green and red is above 0.000 and Trade Short when both are below 0.000 study(title="Daily Delta Trend",overlay = false, shorttitle="Daily Delta Trend") W_C=security(tickerid,"D",close) W_O=security(tickerid,"D",open) // D=W_C-W_O D1 = sma(W_C-W_O,50) D2=sma(W_C-W_O,200) D3=ema(D1,50) D4=ema(D2,200) // //plot(D1,color=green) //plot(D2,color=red) plot(D3,color=green,style=histogram) plot(D4,color=red,style=histogram)