Using Two Moving Averages and Color Fills to Read Price Trends

Summary

This indicator plots two moving averages, their current price labels, and a selectable fill between price and either average, between the two averages, or no fill. The visual treatment is intended to help traders assess entries, trend continuation, exits, and possible re-entry during a continuing trend. Both averages default to exponential, with periods of 50 and 100, and users can change the periods, methods, price inputs, shifts, visibility, and label placement.

The document explains how to check the indicator’s calculations by overlaying its averages with standard platform moving averages using matching settings. It describes checking different average methods and price inputs, and says the author performed comparisons over a stated historical date range. This is a visual chart aid rather than a defined trading system: it offers no performance results, entry or exit rules, or evidence that the fills improve trading decisions. Parameter choices and use within a broader system are left to the user.

Key ideas

• The indicator displays two moving averages with optional fills relative to price or to each other.
• The defaults are exponential averages with periods of 50 and 100, and both can be adjusted.
• Price labels can show average values and can be moved or hidden with their associated average.
• Users can validate average calculations by comparing the indicator with standard moving averages using matching settings.
• The document presents the display as a discretionary aid and does not provide a tested trading strategy.

Tags

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