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Averages > TFS: MBO Indicator

Article/Author: "How To Get In With The Trend And Out At The End", Bryan Strain, S&C Magazine, Traders Tips, 06/2000

Download: Tfs.ela

File Includes:

Indicator - TFS: MBO Indicator
Indicator - Tether Line
Indicator - Vol Osc Avg
Strategy - TFS Signal

Category: Indicator > Averages

Description:

MBO indicator is the third component of TFS trading system. This indicator was developed by Bryan Strain and Mark Whitley.

The idea of MBO is similar to moving average convergence/divergence (MACD) indicator. It is calculated by subtracting the 200-day moving average from the 25-day moving average.

Usage:

The purpose of this indicator is to analyse the security relative to its short- and long-term value. The rule is that today`s MBO must be greater than yesterday`s.

Please refer to the article to get more information.




Inputs:

Fastavg - the parameter tells how many bars to the fast average
Slowavg - the parameter tells how many bars to the slow average

EasyLanguage Code:
INPUTS: FASTAVG(25), SLOWAVG(200);

VARIABLE: MBO(0);

MBO = AVERAGE(CLOSE, FASTAVG) - AVERAGE(CLOSE, SLOWAVG);

PLOT1(MBO, "MBO");
PLOT2(0, "ZEROLINE");