A Moving-Average Difference Derivative Using OHLC4 Prices

Summary

This indicator takes the derivative of the difference between an arithmetic moving average and a geometric moving average. Both averages are calculated from OHLC4 prices, the mean of the open, high, low, and close for each bar.

The description identifies separate settings for the arithmetic-average period and the geometric-average period. It does not explain the derivative calculation, how to interpret its values, what conditions generate signals, or how the indicator performs. The note therefore defines the indicator’s inputs and construction at a high level but does not establish a trading strategy or its usefulness across instruments and timeframes.

Key ideas

• The indicator measures the derivative of the difference between arithmetic and geometric moving averages.
• It calculates both averages from the average of open, high, low, and close prices.
• Separate period settings control the two moving averages.
• The document gives no interpretation rules or evidence of trading performance.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.