The MAD (Moving Average Difference) study is a trend-following oscillator based on the difference between two simple moving averages of price: a faster and a slower one. The lengths of the moving averages need to be selected so that the length of the slower average is greater than that of the faster one by half-length of the dominant market cycle. The difference between the averages is calculated as percentage of the slower one.
||The length of the faster moving average.|
||The length of the slower moving average.|
||The Moving Average Difference oscillator plot.|
||The zero level.|
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.