The indicator displays the difference between the DiffMA lines, i.e., two moving averages calculated within the range of one-direction candlesticks.
The calculations doe not require the availability of DiffMA - the indicator calculates it by itself.
It has two configurable parameters:
- Period - DiffMA calculation period
- Applied price - DiffMA calculation price
Calculations:
DMA = (Up - Dn)
where:
UP = SumUp / CountUp
DN = SumDn / CountDn
SumUp = Sum of SMA(Applied price, 1) for all bullish candlesticks within the Period
SumDn = Sum of SMA(Applied price, 1) for all bearish candlesticks within the Period
CountUp - number of bullish candlesticks within the Period
CountDn - number of bearish candlesticks within the Period