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How to Calculate Price which produces HMAs crossing each other

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    How to Calculate Price which produces HMAs crossing each other

    Hi,

    I'm working on a strategy that uses two HMA lines of different lengths.
    What I'm trying to do now is create an indicator that plots the price value that would make the two HMA lines to cross each other.

    Basically, on a bar by bar basis I want to plot a point where the price would have to reach in order to have the faster HMA cross the slower HMA.

    Unfortunately, my math is not as strong as it use to be so I have been unsuccessful.

    Does anyone know have a formula or technique that can do this calculation?
    Maybe some insight?

    Thank you for your time.

    Anthony
    mrlogik
    NinjaTrader Ecosystem Vendor - Purelogik Trading

    #2
    You likely will have to emulate the logic of the HMA's in your own indicator and do some algebra.

    Lets say the fast MA was a 3 period.

    (C0 + C1 + C2) / 3 = MA value

    You know that MA value must be equal to or greater than the Slow MA so...

    (C0 + C1 + C1) / 3 = SLOW MA VALUE + 0.0001 (something like this)

    You then now C1 and C2, plug in those values and solve for C0 which would be the closing price of the current bar.
    RayNinjaTrader Customer Service

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