Description
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.
Input Parameters
| Parameter | Description |
|---|---|
fast length
|
The length of the faster moving average. |
slow length
|
The length of the slower moving average. |
Plots
| Plot | Description |
|---|---|
MAD
|
The Moving Average Difference oscillator plot. |
ZeroLine
|
The zero level. |
Example*
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.
Past performance is no guarantee of future performance.