The MA_Difference trend indicator displays the absolute difference between:
- the price and the MA1
- the price and the MA2
- MA1 and MA2
The indicator has nine input parameters:
- MA1 period - MA1 calculation period;
- MA1 method - MA1 calculation method;
- MA2 period - MA2 calculation period;
- MA2 method - MA2 calculation method;
- Applied price - price used for the calculation of two MAs;
- Absolute difference - display the difference as an absolute value (Yes/No);
- Show difference MA1/MA2 - whether to display the Difference line (Yes/No);
- Show MA1 - whether to display the MA1 line (Yes/No);
- Show MA2 - whether to display the MA2 line (Yes/No).
Indicator values can be interpreted similar to the standard ADX: high values of MA1 and MA2 point to the presence of a trend, low values indicate consolidation. The Difference line can be used as a threshold for determining high values of MA1 and MA2.
Fig.1. The difference in absolute values
Fig.2. The difference in relative values
