EMA derivative

22 ส.ค. 2019

Here is an indicator that shows the derivative of an EMA . In other words, it computes the tangent of the EMA at any given time and plot it.

I recommand using it with long-period EMA , like 200, as plotted above.

It can help you spot the change of direction of an EMA . It is specially used for long EMA , where sometimes the point of inversion can be difficult to spot.
Changes of direction by the EMA are when the dEMA crosses the 0 line, plotted in yellow.
If it goes from negative to positive, then the EMA started to go upward.
If it goes from positive to negative, then the EMA started to go downward.

Here i circled in green the point where the EMA started to go up. It could be a nice entry point as the market was slowly preparing to go upward. You can then fix a trailing stop loss on the value of the EMA and let the profit roll, slowly but surely.

I also added a smoothing option. It allows you to work on the changing of direction of the dEMA itself ! Here's an example :

In this example, the buy was @$3,500 and sell @$10,000. Keep in mind to look for others indicators that will support the fact that the trend is really changing and this is a long term trade.


So, you know everything about this 2-in-1 indicator, i wish you the best analysis :)

3 มิ.ย. 2020

เอกสารเผยแพร่

Added "Hull Moving Average" option, which allow to plot the derivative of the Hull moving average instead of the EMA.