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Market Pulse

3. Momentum - Moving Average Spread

3. Momentum - Moving Average Spread

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Moving Average Spread (MA Spread) Overview

The 'MA Spread', or Moving Average Spread, is a key metric that calculates the difference between the current market price and a chosen moving average. It's crucial for evaluating the market's directional momentum.

Comparison with Smooth Charts: Like the Smooth Charts, the MA Spread utilizes a moving average. The standard setting for MA Spread is a 15-period moving average. To gain diverse insights, it's recommended to use a 5-period length for the Smooth Spread, a 10-period length for the Smooth Chart, and retain the 15-period length for the MA Spread. This approach provides three distinct perspectives on moving average spreads in relation to the last price across 15 different time frames.

  • Directional Clarity:

    • Upward Momentum: Indicated when the last price is above the set moving average length, signifying an upward momentum.

    • Downward Momentum: Highlighted when the last price is below the set moving average length, suggesting a downward momentum.

More Information on the moving average spread trading model -

Momentum - Moving Average Spread | Settings

3. Momentum - Moving Average Spread

Moving Average

In the Online Trading Solutions Market Pulse App, the Moving Average Spread feature offers a range of customization options to align with individual trading preferences. Here's a detailed breakdown of the settings you can personalize for the Moving Average Spread:

1. Show Moving Average Spread:

  • This option lets you toggle the display of the Moving Average Spread on or off. It's useful for traders who want to focus on specific types of data or simplify their chart analysis.

2. Show High/Lows:

  • Choose whether to include the display of high and low values alongside the Moving Average Spread. This can be particularly helpful for traders who consider price extremes in their market analysis.

3. MA Length (Average):

  • Set the desired length for calculating the moving average. This length determines how sensitive the Moving Average Spread is to recent price movements and can be adjusted to suit different trading styles and timeframes.

4. Warning Threshold:

  • Specify a threshold value for the Moving Average Spread. When the spread is 1 point above or below this value, the app displays a warning color (typically yellow) to alert traders of significant deviations.

5. Positive Value Color:

  • Customize the background color for situations where the Moving Average Spread is above the warning threshold. This color setting helps in quickly identifying bullish market conditions or potential buy signals.

6. Negative Value Color:

  • Similarly, select a background color for when the Moving Average Spread is below the warning threshold. This color can indicate bearish conditions or potential sell signals.

By tailoring these settings, traders can enhance their interaction with the Market Pulse App, ensuring that the Moving Average Spread feature provides data visualization that aligns with their specific strategies and market perspectives. This level of customization is instrumental in making the app a valuable tool for diverse trading approaches.

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