Fixed the code so you can look at all timeframes and not just the daily.
// 4H Delta//Weekly Delta // By TheBullTrader-Use Daily Time frame // Trade Bullish when green is above red and Trade Short when green is below red study(title="DDA-Daily Delta Analysis_v2 ",overlay = false, shorttitle="Daily Delta Analysis_v2 ") D1 = sma(close-open,50) D2=sma(close-open,200) D3=ema(D1,50) D4=ema(D2,200) //plot(D1,color=green) //plot(D2,color=red) plot(D3,color=green,style=histogram) plot(D4,color=red,style=histogram)
Daily Delta is the different in price from the open and close of the candle. Obviously if the candle closes higher, the currency is going up. This indicator measures this change in price (delta = close-open) from the past 50 candles and the past 200 candles. I use Simple moving average to average price direction to determine momentum of the price direction. The green histogram in Daily_Delta_v2 is the 50 day moving average and the red histogram is the 200 day moving average. The way I read the indicator is by watching for short-term, medium price fluctuations. So that means I preferably use the 50 day average on short time frames such as on 15min, 45min, and1hr time frames.