Indicator - TFS: MBO Indicator
Indicator - Tether Line
Indicator - Vol Osc Avg
Strategy - TFS Signal
Category: Indicator > Averages
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.
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.
Fastavg - the parameter tells how many bars to the fast average
Slowavg - the parameter tells how many bars to the slow average
INPUTS: FASTAVG(25), SLOWAVG(200);
MBO = AVERAGE(CLOSE, FASTAVG) - AVERAGE(CLOSE, SLOWAVG);