TFS: MBO indicator by HPotter

MBO tfs

mbo tfs

MBO indicator is the third component of TFS trading system. This indicator
was developed by Bryan Strain and Mark Whitley.
The idea of MBO is similar to moving average convergence/divergence (MACD)
indicator. It is calculated by subtracting the 200-day moving average from
the 25-day moving average.

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

Want to use this script on a chart?

////////////////////////////////////////////////////////////
//  Copyright by HPotter v1.0 09/07/2014
// MBO indicator is the third component of TFS trading system. This indicator
// was developed by Bryan Strain and Mark Whitley.
// The idea of MBO is similar to moving average convergence/divergence (MACD)
// indicator. It is calculated by subtracting the 200-day moving average from
// the 25-day moving average.
////////////////////////////////////////////////////////////
study(title="TFS: MBO indicator", shorttitle="TFS: MBO indicator")
Fastavg = input(25, minval=1)
Slowavg = input(200, minval=1)
hline(0, color=blue, linestyle=line)
xFastAvg = sma(close, Fastavg)
xSlowAvg = sma(close, Slowavg)        
nMBO = xFastAvg - xSlowAvg
plot(nMBO, color=red, style = histogram, title="TFS: MBO indicator")