Description
The MADH (Moving Average Difference - Hann) indicator is a trend-following oscillator based on the MAD indicator. Unlike the original version, it utilizes price data smoothed by the Hann window function instead of simple moving average. In MADH, two lines are calculated:
- Fast line: Hann's window of the close price with user-defined fast length.
- Slow line: Hann's window of the close price with length equal to fast length plus half-period of the dominant cycle.
Using Hann window instead of simple moving average is an attempt to attenuate the lag induced by the latter.
Input Parameters
| Parameter | Description |
|---|---|
fast length
|
The length with which the fast Hann window value is to be calculated. |
dominant cycle
|
The length of the dominant cycle in the market data. |
Plots
| Plot | Description |
|---|---|
MADH
|
The Moving Average Difference -- Hann plot. |
| ZeroLine | The zero level. |
Example*
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.
Past performance is no guarantee of future performance.