Arrow indicator focusing on the direction of moving averages and the Perfect Order (Part 1)
One of the important points when looking at moving averages is the direction of the moving average line.
When price is rising, the moving average tends to slope upward, and when price is falling, it tends to slope downward.
Therefore, the direction of the moving average serves as a clue in determining whether the trend is upward or downward.
Furthermore, if multiple moving averages are displayed, the fact of how many of them point in the same direction can be used as a measure of the strength of the trend.
Also, when three moving averages—short-term, medium-term, and long-term—are displayed, the short-term line is the most sensitive to small price movements, so when considering buying on dips (selling on rallies),“the moment the short-term line reverses upward (downward) and the three moving averages align in the same direction”is considered important in some cases.
Another important point when looking at moving averages is their arrangement.
For example, when displaying three moving averages (short-term, medium-term, and long-term), the order that reacts most to price movements is short-term > medium-term > long-term.
In an uptrend, the order tends to be from the top: short-term, then medium-term, then long-term, and this arrangement is sometimes called the perfect order of an uptrend.
In a downtrend, the order tends to be from the top: long-term, then medium-term, then short-term, and this arrangement is sometimes called the perfect order of a downtrend.
When considering price movement direction and momentum,the timing of the perfect order (or whether the perfect order is currently present)is often given importance.
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Five types of arrow indicators focusing on MA direction and perfect order [MA3SD]
https://www.gogojungle.co.jp/tools/indicators/24828
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The above product includes several indicators, but here I will introduce one of them,
“An MT4 indicator that notifies you when any three moving averages are in an upward (or downward) perfect order and the three moving averages are aligned in the same direction”
about.
The three charts below show examples of signals from this indicator.
In these examples, you can see that it captures well the timing when prices start to rise or start to fall.
Five types of arrow indicators focusing on MA direction and perfect order [MA3SD]
https://www.gogojungle.co.jp/tools/indicators/24828
This product includes,
“An MT4 indicator that notifies you when the directions of any three moving averages align”
“An MT4 indicator that notifies you when the three moving averages (short-term, medium-term, long-term) align in direction at the moment the short-term line reverses”
“An MT4 indicator that notifies you when any three moving averages are in a perfect order”
“An MT4 indicator that notifies you when any three moving averages are in an upward (downward) perfect order and the three moving averages are aligned in the same direction”
“An MT4 indicator that notifies you when, among any three moving averages (short-term, medium-term, long-term), the moment the short-term line reverses, the three moving averages are in an upward (downward) perfect order and aligned in the same direction”
and,“an indicator that supports four moving averages”is also included.
As described above, since several patterns are supported by the indicators, if you place importance on the direction of moving averages and perfect orders, you may be able to find your preferred indicator or your preferred settings.
