This indicator shows you over bought and over sold regions similarly to to rsi or stochastic. This indicator centers a moving average around the hl2 of the price. This is calculated as the difference of four moving averages. The signal line shows you how much momentum in any given direction you have. You can also see how much volatility there is by the band width. Just like the Bollinger band high volatility comes before low volatility and visa versa. You can also see what the market is doing based on the signal crosses. If the fast line is above the slow line you are going up and visa versa. This indicator works in most markets, especially crypto. There is a tool tip for every aspect of this indicator explaining how everything works.
Key Feature: >See where the price is relative to a mean price >Measure volatility >Clean global settings >Normalization feature lets you scale the band from 0 to 1. You loose some information but its easier to use if you aren't measuring volatility.
I hope you are very profitable with this one! If you find this indicator is useful to you, Star it, Follow, Donate, Like and Share. Your support is a highly motivation for me.
Had great success using this today with DOCU. Check out today's chart and see when the fast line touches the outside of the upper price cloud. Three near-perfect rejections. I only played it once but this is proving to be one of the more reliable indicators (in conjunction with others) that I've used. Cheers @peacefulLizard50262
Hey Peaceful Lizard, thanks for this! Quick question. Could you explain the purple color gradient? Trying to figure out what it means when the purple becomes darker. Sorry if this is a dumb question.
peacefulLizard50262
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@blandry513, totally reasonable question! It's for when you normize. It shows you the bandwidth, the more purple the wider. You can adjust the look back for the bandwidth in the settings. :)