MA Indicator needed and opinions wanted...

Hi all,
Since this is my first post let me take a moment and congratulate you folks on such a fine board. While the mods here are to be applauded on the "cleanliness" of the place, ultimately, the true wealth of a board comes from it's members and the amount of knowledge assembled here is amazing. Kudos.

Now, irregardless of my various script writing adventures, I don't classify as a programmer. And to be perfectly honest, with as many irons as I already have in the fire, I'd rather spend what spare time I have learning to be a better trader than to learn how to write MQL4. I'm happy to leave that to you computer gurus that dream in binary. LOL...

So, I'll throw out here what I would love to see in an indicator and maybe someone here can tell me how big a deal it would be to write one that would do this.

And to go ahead and answer the inevitable question of why, it's to test some theories I have about measuring the strength of divergence. Ronald Raygun alluded something close to it on one of the MA threads, but where he was thinking "number of crosses vs. time", I'm looking at it more from a "how much divergence since the cross". I want to put a calculatable number on it. I've been doing this manually, but if an indicator could be written this way it would make it much easier to test the theories and/or play with the different numbers and time frames to see how well it works. If it works as well as I think it will, an EA based on it should be pretty good at scalping a given set of pips in some of the smaller time frames.

Course, there may be one already out here that does that, but if so, I haven't seen it. Now, I'm thinking that what I'm wanting might could be added to some of the MA indicators already out there, but I don't know which is why I'm asking for input. Basically, it would be a MA indicator that will show 3 different MA's. For testing purposes, it would just about have to come with user option as to MA speed. This might can be done with two, but currently I'm using three so...

Ok, here's what I'm looking at. Using the chart shift so there is pleny of free space in the upper right hand quadrant of the chart that is the grid to see.



Row1: Label 1 | Data5 | Data4 | Data3 | Data 2 | Data1

Row2: Label 2 | Data5 | Data4 | Data3 | Data 2 | Data1

Row3: Label 3 | Data5 | Data4 | Data3 | Data 2 | Data1

Row4: Labe 4 | Data5 | Data4 | Data3 | Data 2 | Data1


Now here's what goes there.

Row 1:
Label 1 = (Slowest) MA
Data5 = (Slowest) MA price as of close of period, 4th period previous to current
Data4 = (Slowest) MA price as of close of period, 3rd period previous to current
Data3 = (Slowest) MA price as of close of period, 2nd period previous to current
Data2 = (Slowest) MA price as of close of period, period previous to current
Data1 = (Slowest) MA price as of close of current period

Row 2:
Label 1 = (Middle speed) MA
Data5 = (Middle speed) MA price as of close of period, 4th period previous to current
Data4 = (Middle speed) MA price as of close of period, 3rd period previous to current
Data3 = (Middle speed) MA price as of close of period, 2nd period previous to current
Data2 = (Middle speed) MA price as of close of period, period previous to current
Data1 = (Middle speed) MA price as of close of current period

Row 3:
Data5 = (Fastest) MA price as of close of period, 4th period previous to current
Data4 = (Fastest) MA price as of close of period, 3rd period previous to current
Data3 = (Fastest) MA price as of close of period, 2nd period previous to current
Data2 = (Fastest) MA price as of close of period, period previous to current
Data1 = (Fastest) MA price as of close of current period

Now, here is where I'd love to hear some input. I've been thinking percentages, instead of pips, but has anyone got any other ideas? What I want is a quantifiable number that is calculated with the current data.

Row 4:
Data5 = Percentage of Row3/Data 5 value compared to Row1/Data5 value.
Data4 = Percentage of Row3/Data 4 value compared to Row1/Data4 value.
Data3 = Percentage of Row3/Data 3 value compared to Row1/Data3 value.
Data2 = Percentage of Row3/Data 2 value compared to Row1/Data2 value.
Data1 = Percentage of Row3/Data 1 value compared to Row1/Data1 value.


So, at the close of the candle, all the current numbers would post in the column farthest to the right, all the other numbers would shift one column left. The whole point is that you could watch the divergence (in hard numbers), and see just how far it's diverging within the given time frame. Obviously, the biggest advantage to having this worked out in usable numbers (ma speeds, tf's, etc) would be for scalping in the smaller time frames. But, if the numbers could be worked out by using an indicator like this, then it would seem like an EA could be written to use with it that not only would place a trade based on the divergence numbers falling within your parameters, but would also close out that trade by the same method ( row4data1 < x%, or some such).

Anyway, right now the indicator is all I need to test this for a while and see if it works. And if this is really too major an undertaking, then this could be done with 2 MA's.

Tell me it's a great concept or tell me I'm crazy, either way, all questions, opinions, raves or rants appreciated!

Please explain further Row 4---Data 1 to 5. What is the meaning of
a. Percentage of Row 3
b. Data 5 value compared to Row 1
c. Data 5 value.
If you can simplify your explanation it will help a lot to visualize what indicator your want.
Thanks
T101

Hi trader, thanks for the question.

what I'm trying to do is come up with an easy way of "measuring the amount of divergence" as it were. I have noticed that on some of the smaller time frames that there are plenty of times that say an MA3 would break out away from a MA10 -15 or whatever, in such a way that by the time it came back to cross again, there could have been sometimes quite a few pips that could be made. What I was wanting to do was a way of putting a number to it where it could be seen easily. If you could see all the numbers at a glance for the last 5 periods, and had a number based system of some type to show the difference between the periods then at some point it should be possible to easily see at a glance whether it was viable to place the trade.

I'm figuring that it would take some testing with the various parameters (ma speeds, time frames, etc) but it would seem at some point you could watch that last row and say:

If Row4Data3 = cross
and
if Row4Data5 > x
then place trade

or something like that. The point is so that you can watch that row of data when the cross happens and easily see if it looks to be worth jumping in on. By putting a hard number to it, it makes it easier to see at a glance than just watching the ma lines on the candles.


Of course, the flip side of this, if it was to work that well, would be that you could also set it up so that once row4data5 became < x, then exit, as it would show the next cross coming up.

Hopefully, that helps explain it?

ETA: Just realized I didn't specifically answer your question on row 4.

all of row 4 data would be a calculated number showing the difference between row 3 (fastest ma) and row 1 (slowest ma).

data 1 being the last closed period, data 5 being 4th closed periods previous.

Sorry, maybe im slow but I still do not understand the last row. I think it will be best if you put some numeric example or formula, anything that will facilitate the easy transfer of your idea.
T101