Estimating the Price of Moving-Average Intersections

Summary

This indicator presents functions for estimating the value at which two changing series intersect between consecutive bars. It calculates each series’ one-bar slope, derives a shared fraction of the bar interval from their current separation and relative slopes, and projects one series to the resulting intersection. Separate functions return an estimate for any cross, an upward cross, or a downward cross, and return no value when the relevant crossing condition is absent.

The script demonstrates the technique with selectable moving averages or external inputs, chart annotations for crossings, and an intersection matrix for a range of simple moving averages. The matrix displays estimated crossing prices among the selected averages. This is a geometric interpolation based on straight-line movement between adjacent observations, so it estimates an intrabar crossing under that assumption; it does not establish how prices moved within the bar or provide evidence that crossover events are predictive trading signals.

Key ideas

• The method estimates an intersection by treating each series as a straight line between its current and prior values.
• The shared intersection fraction follows from the current difference between series and their relative slopes.
• Separate functions detect general, upward, and downward crossings and report an estimated intersection value.
• A displayed matrix applies the calculation to pairs of simple moving averages over a selected length range.
• The estimate relies on linear interpolation between bars and is not evidence of predictive performance.

Tags

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