Averaging Positive and Negative Moving Average Speed

Summary

The Speed Indicator description explains a double histogram that displays separate averages for positive and negative moving average speed. The positive average is shown in green and the negative average in red. A user-selected averaging period controls how many observations of each sign are used, with the indicator searching backward for that many positive bars and that many negative bars separately before calculating each mean.

This approach gives traders a way to compare the typical magnitude of upward and downward speed readings without combining the two groups into one average. The stated example uses a period of 300 observations in each sign category. The document does not define how MA Speed itself is calculated, describe signal rules, or provide charts, test results, or caveats about sparse observations. It is therefore a brief explanation of the averaging display rather than a complete strategy or evaluation.

Key ideas

• The histogram separates positive and negative moving average speed readings.
• Positive and negative readings receive independent averages and visual colors.
• The input period sets the count of observations sought for each sign.
• The document does not define the underlying speed calculation or provide performance evidence.

Tags

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