The Moving Average Cross is an indicator that plots a fast and a slow moving average. For both averages you may select from over 30 different algorithms. The indicator can be used as a trend filter or for determining support and resistance. The advantages of applying a Moving Average Cross was discussed in our Indicator Spotlight post (with video) here.
Indicator Description
The Multiple Moving Average Cross indicator plots two moving averages, a fast and a slow moving average. You can use it as a trend filter to show whether the market is in an uptrend or downtrend. One may display the current trend via paint bars or expose it via the public property data series, for use in automated strategies or other indicators. The trend filter uses two different algorithms:
Cross: The current trend changes to “uptrend”, when the fast moving average crosses the slow moving average from below. The current trend changes to “downtrend”, when the fast moving averages crosses the slow moving average from above.
Thrust: The current trend changes from “downtrend” to “uptrend” with the first bullish thrust bar that plots above the upper moving average. A bullish thrust bar is a bar that closes above the prior bar’s high and has a larger range than the prior bar. The current trend changes from “uptrend” to “downtrend” with the first bearish thrust bar that plots below the lower moving average. A bearish thrust bar is a bar that closes below the prior bar’s low and has a larger range than the prior bar.
Other Library Indicators
The Multiple Moving Average Cross indicator is most reliable when aligned with the mid/higher time frame trend bias and Volume / Range Analysis. You may for example review the trend bias using the Donchian Channel, Regression Channel, Daily Regression Channel or the Traders Dynamic Index (TDI). The Donchian Channel, TDI indicator and the Regression Channel were discussed our Indicator Spotlight.
For Volume / Range Analysis you may have a look at the Force Index, Relative Volume or Relative Ranges.
Apart from the Multiple Moving Average Cross indicator, our Multiple Series Indicator Category include the Multiple Deviation Bands, Multiple MACD, Multiple Moving Average Wave and the Multiple Keltner Channels indicators.
The Multiple Moving Average Cross indicator is available for NinjaTrader 8.
