Moving Average Stochastic by Vitali Apirine
Two can be better than one. This momentum-based trading system uses two indicators and helps identify divergences and trends.
It's not unusual to look at two indicators simultaneously to determine when trends are about to begin, end, or continue. Crossovers of indicators are a popular analytical method used by technical analysts. The moving average stochastic (MAS) is one oscillator worth paying attention to. MAS is a momentum indicator system that shows the location of two exponential moving averages (EMAs) relative to the high–low range of the larger moving average over a set number of periods. MAS is based on the stochastic oscillator, which was developed by George C. Lane. There are two separate indicators: MAS(26) and MAS(12). MAS(26) measures the level of the 26-day moving average relative to its high–low range over a given period of time. MAS(12) shows the level of the shorter 12-day moving average relative to the high–low range of the larger 26-day moving average over a set number of periods ...