Description:
The Departure Chart is a classic technical analysis tool that helps traders and investors identify market trends by comparing two moving averages of different timeframes. It is handy for determining overbought and oversold conditions in the market.
Input Parameters:
- Fast: Moving average that reacts quickly to recent price changes, commonly used for short-term trend analysis.
- Slow: Moving average that responds more slowly to price fluctuations, useful for identifying longer-term trends.
- MA Type: Select either Simple or Exponential Moving Averages that help calculate this indicator.
- Price Source: The specific data points (such as open, high, low, or close) from each candle in a financial chart that an indicator uses for mathematical computations, enabling the calculation of metrics like the average over a specified period.
Use Cases:
- Entry and Exit Signals: Traders may consider entering a long position when the short-term moving average crosses above the long-term moving average and exiting the position when the short-term moving average crosses back below the long-term moving average.
- Combining with other indicators: Traders can combine the Departure Chart with other technical indicators, such as the Relative Strength Index (RSI) or the Moving Average Convergence Divergence (MACD). This can provide a more robust understanding of market conditions and improve trading accuracy.
This feature can be used in:
- Market Scanner
- Strategy Tester
- Multi-Factor Alerts
- Smart Checklist
Do you want to learn more? Check out our Learning Center Article.
May 10, 2024