Gain/Loss Moving Average [Cyrus c|:D]
This is a simple momentum indicator. It calculates the moving average of gains and losses. As you can see in the chart above, gains have been decreasing in each wave which is also captured by this indicator. Its closest relative is RSI but unlike RSI it is not range bound. Divergence on indicators that are not range bound are generally more reliable.
Recommended settings:
- EMA as moving average type.
- EMA length 27 is equal to RSI length 14 (2 x RSI length - 1). You can sync the length on the two indicators using that equation.
- hlc3 (AKA typical price) as input source might be better than "close" as it captures more information. If you use hlc3 as a source, then change the chart type to line and set hlc3 as the source for identifying divergence.
PS: Let me know if you know any identical indicator. I may be re-inventing the wheel :)
Recommended settings:
- EMA as moving average type.
- EMA length 27 is equal to RSI length 14 (2 x RSI length - 1). You can sync the length on the two indicators using that equation.
- hlc3 (AKA typical price) as input source might be better than "close" as it captures more information. If you use hlc3 as a source, then change the chart type to line and set hlc3 as the source for identifying divergence.
PS: Let me know if you know any identical indicator. I may be re-inventing the wheel :)
Release Notes:
- implemented the same fix as True RSI
- made the code a bit more clear
- made the code a bit more clear
Release Notes:
- this is the original graphics
