DMA (Different of Moving Average)

Indicator Description

DMA (Difference of Moving Average) is a trend indicator that reflects price trend changes by calculating the difference between two moving averages of different periods.

Function Information

• Function Name: DMA
• Input Parameters: Open
• Parameter Settings: timeperiod1 (default: 13), timeperiod2 (default: 55)
• Output: ddd, ama

Calculation Principle

DMA reflects price trend changes by calculating the difference between short-term and long-term moving averages. When DMA is positive, it means the short-term average is above the long-term average and the market is in an uptrend; when DMA is negative, it means the short-term average is below the long-term average and the market is in a downtrend.

Application Scenarios

1. Trend direction judgment
2. Trend strength analysis
3. Trend reversal identification
4. Trading signal generation

Usage Suggestions

1. DMA turning from negative to positive can be seen as a buy signal
2. DMA turning from positive to negative can be seen as a sell signal
3. Use in combination with other trend indicators
4. Pay attention to the impact of parameter settings