A Mirrored Moving Average Difference Indicator with Signal Line
Summary
The Mirror MA indicator compares two moving averages and plots their difference in both directions in a separate chart window. One series is the first average minus the second, while the mirrored series reverses that subtraction. A further line smooths the direct difference using a moving average, giving users a signal line alongside the paired outputs.
The indicator exposes separate choices for each average's period, calculation method, and applied price, plus the signal line's period and method. This makes the calculation configurable, but the document does not specify parameter recommendations, trading rules, or an interpretation of crossings and divergences. It presents the indicator's construction rather than evidence of profitability or a tested strategy, so any trading use would require independent evaluation.
Key ideas
- The indicator plots the difference between two moving averages and its sign-reversed counterpart.
- Each component moving average can use its own period, method, and applied price.
- A moving average of the direct difference forms the signal line.
- The document describes indicator calculations but provides no performance evidence or trading rules.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.