The Algorithm Behind the Indicator
This nifty indicator evaluates all Simple Moving Average (SMA) periods from MIN_PERIOD to MAX_PERIOD at each bar. Its mission? To pinpoint which SMA triggered the latest bounce—whether that's an upward or downward movement. If it doesn't find a suitable SMA, the bar remains blank.
What’s the Purpose?
Essentially, this indicator is designed to help traders spot market momentum. When you observe both the upper and lower lines filled, you're likely looking at a range-bound market scenario.
Processing Power Requirements
Keep in mind, this indicator requires substantial processing power. If you opt for an overly broad range of SMA periods or switch to more advanced moving average methods, you might find that the indicator responds slowly. However, once it’s up and running, it will only need to refresh the latest bar.
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