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Averages > Buff Averages

Article/Author: "BUff Up Your Moving Averages", Buff Dormeier, S&C Magazine, Traders Tips, 02/2001

Download: Buffavg.ela

File Includes:

Indicator - Buff Averages
Function - Buff Average

Category: Indicator > Averages

Description:

The indicator plots two moving averages based on the day.s price and volume. The Buff moving average for n days is calculated according to the formula:




where VolSum is the sum of all Volume for n days.

Usage:

The most popular method of interpreting a moving average is to compare the relationship between a moving average of the security's price with the security's price itself (or between two different moving averages). A buy signal is generated when the security's price rises above its moving average and a sell signal is generated when the security's price falls below its moving average.




Inputs:

Price - the data series to average
FastAvg - the parameter tells how many bars to the FastAvg average
SlowAvg - the parameter tells how many bars to the SlowAvg average

EasyLanguage Code:
INPUTS: PRICE(CLOSE), FASTAVG(5), SLOWAVG(20);


PLOT1(BUFFAVERAGE(PRICE, FASTAVG), "FASTBUFF");
PLOT2(BUFFAVERAGE(PRICE, SLOWAVG), "SLOWBUFF");

IF PLOT1 CROSSES ABOVE PLOT2 THEN
ALERT("BUFF AVERAGES BULLISH CROSSOVER.");
IF PLOT1 CROSSES BELOW PLOT2 THEN
ALERT("BUFF AVERAGES BEARISH CROSSOVER.");