badshah_e_alam

Gap Modified Moving Average

Idea and Motivation
I am using my Modified Moving Average indicator for a while.
I always wanted to add some more information to moving averages and made some modification to Moving averages.
The additional Information I have added to the Moving Average is How much Price difference it has when it opened current day and closed previous day.
Adding weekly average gaps information to the Moving Averages, Adding Monthly average gaps information to the Moving Averages, Adding Yearly average gaps information to the Moving Averages. It makes the moving average more Informative and Modified.

How is Gap calculated in this code?
gaps may have different meaning for different people but in this code, Gap is calculated as ,Gap=previous bar close-present bar open

Weekly average Gap is defined as Weekly average of Gaps(i.e previous bar close-present bar open) for one week
Monthly average Gap is defined as Monthly average of Gaps(i.e previous bar close-present bar open) for one month
Yearly average Gap is defined as Yearly average of Gaps(i.e previous bar close-present bar open) for one year

you can use EMA or SMA in the input

How to use this Indicator?
When the divergence of the lines occurs it indicate that the the price is going to move much faster in that particular direction.
Best Suitable for 10m, 15m only not good for any other resolution.

what does the plot shows?
Red Plot is plot for Selected Moving Average + Yearly average Gap
lime Plot is plot for Selected Moving Average + Weekly average Gap
blue Plot is plot for Selected Moving Average + Monthly average Gap
will bring More Updates if required.
Release Notes: UPDATES ADDED:
Now you can change Length of each indicator separately, you can play around by changing the setting ,this indicator best works for only 5m-15m (strictly) time frame, best results at 5m Time frame. Specially Designed For Intraday Traders.
I have added option to change length of the following:
Red Plot fill is for Selected Moving Average + Yearly average Gap :by default its length is 21 (can be changed In input)
lime Plot fill is for Selected Moving Average + Weekly average Gap: by default its length is 14(can be changed In input)
blue Plot fill plot for Selected Moving Average + Monthly average Gap: by default its length is 7(can be changed In input)

I have modified line plot to fill plot for more visibility of the trends.
How to read this Indicator?
After some Visual changes the V2.0 of this indicator is comfortable to read. When ever The blue fill , Green Fill and The Red fill area width Increases or Diverges then the trend for that day is an indicator of move in that direction.
When ever The blue fill ,The Green Fill and The Red fill area width are same or consolidated then the trend for that day is sideways.
Before deciding to use this Indicator, you should carefully Study its all details and its behavior.
Release Notes: UPDATES ADDED2:
just one important change
In the Input Title earlier All three Inputs Were same
"Enter Modified Moving Average Length"
"Enter Modified Moving Average Length"
"Enter Modified Moving Average Length"

Now Input Title Names are more clear to know which input is for which one and has been changed to following
"Enter Modified Moving Average Length For Red Fill"
"Enter Modified Moving Average Length For Blue Fill"
"Enter Modified Moving Average Length For Lime Fill"
Release Notes: Earlier Update was not working properly so I have To switch to previous version of the update.
Protected script
This script is published closed-source and you may use it freely. You can favorite it to use it on a chart. You cannot view or modify its source code.
Want to use this script on a chart?
An enthusiast trader. I code my strategies in pine script.DM me or Mail Me for any Info at tabrejalam786007@gmail.com(paypal)
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Comments

I like the concept. Will plot and do my study. Thanks for sharing !!
Reply
@SINGHAK, Thanks ,Happy to get feedback and if any improvement required.
Reply
If anyone is having Doubt In understanding This indicator, then feel free to ask in the comments. I will be happy to Clear your doubts.
Reply
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