The idea of the indicator
Explore the shape of a line by applying three different formulas:
- Fast-Slow
- Fast/Slow
- (Fast-Slow)/Slow
Rice. 1. Two iMA Formula
In the figure above, three indicators are added to one chart – each has its own formula. As you can see, the shape of the indicator line is the same in all three cases – only the values of these lines differ.