Description
The Weakness In A Strong Trend study analyzes abnormal behavior (weakness) of the price plot based on disagreement between price and its moving average.
A Long signal (yellow arrow) is suggested after three bars in a row each having price lower than the previous while moving average is still rising. A more confident signal (green arrow) is produced if this happens for four bars in a row. Conversely, the Short signal (light red arrow) is given after three consecutive higher prices while moving average is declining; a stronger signal (red arrow) is produced after four consecutive higher prices.
Input Parameters
| Parameter | Description |
|---|---|
price
|
The price used in calculations. |
length
|
The number of bars used in calculation of the average. |
average type
|
The type of average used in calculations. |
Plots
| Plot | Description |
|---|---|
LongSignal
|
Plot displaying Long signals. |
ShortSignal
|
Plot displaying Short signals. |
Example*
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.