Gain a better understanding of the nature of trend activity on an end of day, or intraday basis with the Moving Averages Heat Mapping Library. Reveal vital information regarding trend strength, both short-term and long-term, as well as pullbacks within a trend and potential impending changes in trend.
The Moving Averages Heat Mapping is a technical analysis indicator which is used to analyze trends and to identify trend changes. Short term moving averages show short term trends or trader sentiments, while long term moving averages which show long term trends or investor sentiments.
While the periods and number of Moving Averages of both groups can vary according to your trading goals, generally a bullish trend is identified when short term moving averages are above long term moving averages and bearish trend is identified if the scenario is just opposite. The closing in and intersection of two groups of Moving Averages are considered an indication of trend weakening and trend changes. Similarly, convergence and divergence of Moving Averages within a group also can also indicate trend changes.