The PDMA + MA_Dist indicator is a powerful tool designed to analyze the relationship between two customizable moving averages (MAs) and the distance of a slow moving average from the price. It provides valuable insights into market trends and potential buying or selling opportunities.
This indicator calculates the percentage difference between the closing price and the fast moving average (MA). It also calculates the percentage difference between the closing price and the slow MA. Additionally, it calculates the percentage difference between the fast MA and the slow MA. These three metrics are then combined to form the final value of the indicator.
By plotting the PDMA + MA_Dist indicator on a chart, users can visualize the dynamics between the MAs and the price. The indicator helps identify periods of bullish or bearish sentiment in the market based on the position of the closing price relative to the MAs. It also highlights potential buying or selling signals when the final value crosses predefined buy or sell levels.
The PDMA + MA_Dist indicator offers a comprehensive perspective on market trends and price movements, assisting traders and investors in making informed decisions.