Proven Strategies That Keep You Ahead of the Market

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.

  •  Display Moving Average heat without any programming required.
  •  Reveal long or short term bands in your desired market with a single click.
  •  Identify a changing trend with heat mapping.
  •  Visually display trend strength and pullback.
  •  Use indicators to uncover buy and sell signals.

The relationship between the two sets of moving averages is used by traders to determine if the outlook of short term traders aligns with investors who have a longer term outlook.

Changing trends are identified when the two groups of moving averages intersect. A bullish trend is present when the short‐term moving averages are above the long‐term averages. Conversely, a bearish trend occurs when the short‐term averages are below the long‐term averages.

Measuring Short Term Trend Strength

With stronger moves, the averages will generally line up and point in the same direction, and will eventually change over or flip one at a time at highs and lows, until price finally proceeds through in the other direction of the trend.

Long Term Moving Averages

Long term moving averages will miss important data and tend to lag during current events. The Long term average may miss a buy or sell signal, due to the trend already having passed its end.

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