Price Aceleration on MA

This indicator calculates the DEMA over a given interval and estimates price acceleration using this information.

Intervals where acceleration is greater than the specified value are plotted in the chart window with different colors. The indicator uses internally the standard Moving Average indicator.

The indicator can be used with any broker. It adjusts automatically to 4 or 5 digits. It uses the timeframe and pair of the current chart. The main goal is to define and show the moment when the price has a strong movement in any direction, and to help enter the market at this moment.

Of course, signals produced by the indicator should be confirmed by other methods to filter false signals.

Purpose

The indicator can be used for manual or automated trading within an Expert Advisor. For automated trading, use the indicator buffer of the double type:

1. Buffer 0 - DEMA value, is the main line of the indicator.
2. Buffer 1 - bearish line of the indicator, plotted over the main line (must not be equal to EMPTY_VALUE for signal).
3. Buffer 2 - bullish line of the indicator, plotted over the main line (must not be equal to EMPTY_VALUE for signal).
4. Buffer 3 - trend buffer of the indicator, not plotted. (+1 up trend, -1 down trend, 0 no trend). In this context, trend exists if acceleration is greater than input parameter Accel.

Parameters

1. Period - period of the DEMA.
2. Method - method of averaging:
• MODE_SMA - 0.
• MODE_EMA - 1.
• MODE_SMMA - 2.
• MODE_LWMA - 3.
3. Price - price used for averaging:
• PRICE_CLOSE - 0.
• PRICE_OPEN - 1.
• PRICE_HIGH - 2.
• PRICE_LOW - 3.
• PRICE_MEDIAN - 4.
• PRICE_TYPICAL - 5.
• PRICE_WEIGHTED - 6.
4. Accel - the price is considered "accelerated" over this value. Roughly speaking it measures the speed of the price movement, expressed in pips per candle. Typical values are in the range 1 - 4.