Forex Slope Moving Average Indicator
MetaTrader Slope Moving Average Indicator
We have design many trading system that use a slope moving average indicator and in this blog article we will explain and show you how to build your own Slope indicator using the Metatrader 4 Platform.
But first let me explain exactly what is the slope of the line?
The slope of a line in the plane is defined as the rise over the run, m = Δy/Δx.
In mathematics, the slope or gradient of a line describes its steepness, incline, or grade. A higher slope value indicates a steeper incline. (Slope, as a practical term, is not defined for theoretically perfectly horizontal or vertical lines.)
The slope moving average indicator is normally described by the ratio of the “rise” divided by the “run” between two points on a line. The line may be practical – a set by a road surveyor – or in a diagram that models a road or a roof either as a description or as a plan.
Mathematically, angle has no meaning on a graph where the axes have different units, in this case price and time. If you want meaningful values use slope.
In this case, slope moving average indicator has units of price/time (or points/time) and it stays the same regardless of scale of the axes. If you have a line with a of slope 10 points per bar then drag the scale, the visible angle changes but the value of the slope stays the same, i.e. 10 points / bar.
Now lets look at some code in MetaTrader 4 to explain the formula for the slope moving average indicator.
First we start with 2 Moving Averages using Custom Indicator Function.
MA1 = iMA(NULL, 0, MAPeriod, 0, MA_Mode,PRICE_MEDIAN, EndMAShift );
MA2 = iMA(NULL, 0, MAPeriod, 0, MA_Mode,PRICE_MEDIAN, StartMAShift);
Lets define the Rise Δy or the different between the moving averages
Rise = MA1-MA2
The run Δx the different between two point in bar time
Run= EndMAShift – StartMAShift
Slope = Rise/Run
We can get the value of the angle by 10000.0 : Multiply by 10000 so that the Angle is not too small for the indicator Window.
Take ArcTan of value to get the angle in radians and convert to degrees
ConvertToDegrees = 3.14159/180.0;
Angle = 1000 * MathArctan(Angle)/ ConvertToDegrees ;
Depending on the Currency Pair you will have to compensate for the multiplier for JPY
To 10 instead of a 1000 .
By having this type of indicator or function built into your trading system can better filter out bad trades.
If you would like to receive a copy of the slope moving average indicator please go to our website http://expertadvisorprogramming.com to download your copy of the slope moving average indicator today!