Three Moving Averages for Trend Signals and Position Exits

Summary

The MAMy indicator uses three moving averages calculated from closing price, the average of open, high, low, and close, and opening price. It signals a buy when the close-based average is above the OHLC-average line and that line is above the open-based average. It signals a sell when the ordering is reversed. These stacked averages are described as resembling the Alligator indicator.

The indicator also defines exits separately: a cross of the close-based average above the OHLC-average line closes a short, while a move below it closes a long. A green line displays entry direction through zero-line crossings, and a red line displays exit direction. The document explains the signal rules but provides no parameter settings, market or timeframe guidance, backtest, or performance evidence. It should therefore be read as a specification of an indicator's signals, not proof that the signals are profitable or robust.

Key ideas

• The indicator compares moving averages of close, OHLC average, and open prices.
• A bullish ordering of the three averages triggers a buy signal, while the reverse ordering triggers a sell.
• The close-based average crossing the OHLC-average line provides separate exit signals.
• A green line displays entry signals and a red line displays exit signals through zero-line crossings.
• The document gives no backtest 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.