MA My - VertexFX

[edakad 10]

MAMy is a VTL client side indicator to identify the beginning of short term changes in trend. It is based on the relationship between Moving Averages of close, open and weighted close. It plots two lines on the indicator pane, the green line showing change in trend and the red line, which can be used a signal line. The green line is fast responsive to changes in short term trend. When it spikes above zero level, a new uptrend is identified. When it spikes below zero level, new down trend is identified. Green line above red line indicates uptrend and green line below red line indicates down trend. MAMy identifies short term trend reversal, so it must be used with filters that identify overall trend direction and signals against the overall trend must be ignored. A Moving average can be used as trend filter and buy signals should be taken only when the green line spikes above zero level. See image attached.

The green line at zero level indicates short term consolidation or trading range. MAMy is useful to generate entry signals with green line spikes when it is used together with other indicators. It is also useful to exit trades when the short term consolidation starts as the green line move to zero levels. It generates many false signals, but when a proper trend filter is applied, it generates good entry signals.

mamy.zip