How the MA THRESHOLD block works

The threshold is a conditional block that is triggered whenever the price is above or below the xMA(L) depending on which trigger you chose.

Lexicon

MA = Moving Average SMA = Simple Moving Average EMA = Exponential Moving Average WMA = Weighted Moving Average

SMMA = Smoothed Moving Average L = Number of candles (Length)  xMA = The kind of MA you selected.

 

Parameters

• MA type can be SMA, EMA, WMA, SMMA.
• Analysis Period is the period that xMA will take into account (If you choose 4H, xMA will use 4H candles).
• Length is the Number of candles calculated.
• Price Position can be Above or Below.
• Deviation Threshold is the minimum Percentage at which the price needs to be compared to the xMA to trigger the block.
• Source choice can be on Low, High, Close or Open candle. More info about the use of High/Low source here

USE CASE

In the following example, we are gonna BUY 100% when the price is 4 % above the EMA(9)4H and SELL 100% when the price is at least 4% below SMA(9)4H.

 

 As you can see, we bought when the price was 4% above the SMA(9) and our sell triggered when the price was 4% below the SMA(9).