High Low Moving Average
The High Low Moving Average study allows you to quickly and easily compute a simple moving average of the high and low for the interval. The length of the moving average may vary for the high and low.
Some traders use this study as a measure of the market's support and resistance areas (at what price level do buyers enter the market and support prices, or at what price level do sellers take profits and pressure the market lower?) The moving average of the high could be the resistance area, while the moving average of the low is the support area.
Like any moving average system, you can vary the rules of the trading system. Some traders prefer to buy or sell breakouts above or below the resistance and support areas, respectively. Others, tend to use the resistance and support areas as zones to establish a market position in the direction of the dominant market trend.
Generally, the high/low moving average is not a crossover system. Rather, it creates a channel about the bars on the price chart. In a market with a strong trend, prices may trade beyond the channel, either above or below. A trader could use the escape from the channel as a strong reason to establish a complementary market position.
Period1:The length of the first Moving Average. This application uses a default of 10.
Period2:The length of the second Moving Average. This application uses a default of 10.
Aspect1:The Symbol field on which the study will be calculated. The application uses a default of "High".
Aspect2:The Symbol field on which the study will be calculated. The application uses a default of "Low".