Signal Moving Average

The Signal Moving Average exists for one job: being the slower half of crossover systems. In a trending market it behaves like a standard moving average of the same period; in a ranging market it deliberately diverges away from price. That single behavior attacks the crossover trader's worst enemy (the cluster of meaningless crosses that congestion produces), because a line standing apart from the chop simply cannot be crossed as often.

How to Trade the Signal Moving Average?

• Green fill between price and line: price is above the signal line. The shaded area gives the bullish/bearish read at a glance.
• Price crossing the line: with range-born crosses suppressed, a cross that does occur carries more weight than the same event on a plain average.
• Line color: the signal line only recolors once a clear trend emerges, so a neutral line is itself information: the market is ranging.
• Pair it with a faster average: run it as the signal leg beneath a quicker moving average to refine entries.

Set against a simple moving average of the same period, the design's cumulative count of price/line intersections grows far more slowly through choppy stretches, exactly the crossings that rack up transaction costs without ever producing a trend.

Signal Moving Average Settings

• Length: the moving average period.
• Src: the source series the average is computed on.

Frequently Asked Questions

Why does the line drift away from price in ranges?

What should I pair it with?

How do I get the Signal Moving Average?