Overview
The Stats tool gives you very detailed, at a glance analysis of multiple exponential moving averages. This indicator identifies how far price moves from a moving average and how often price pulls back to a particular moving average. This tool reads a specific set of exponential moving averages (EMAs) and provides specific statistics sets as to what they are doing, how they relate to each other, and your trading on any time frame chart.
There is a great wealth of information within the Stats tool, and it may seem a little confusing at first look. Each component is broken down into a label that provides specific data. Once learned, the information provided is easy to read and understandable.
It is helpful when first using the Stats tool, to add standard exponential moving averages on your chart with the same time periods and colors that are analyzed in the stats tool. Although displaying standard EMAs on a chart is not needed, this will help you conceptualize and process how this tool works.
This tool answers questions like:
What is the best EMA to buy pullbacks for a stock?
Which EMA holds the best?
If price is above the 200 SMA, how many bullish pullbacks has this stock had?
How much time does one EMA spend above another?
If the stock is above its 8 EMA – what is the average move for that stock “away” from its 8 EMA before it starts pulling back?
How to read the indicator
Exponential moving averages have been around for a long time, are widely used, are a great visual tool for trading, and are very useful. Here is a chart with six standard EMAs (8-yellow, 21-white, 34-magenta, 55-cyan, 89-red, 144-grey)
If only limited to visual interpretation, a Moving Average tends to have limited use. The Moving Average Stats tool reads these same exponential moving averages simultaneously and gives a wealth of historical information to aid in trading decisions. The exponential moving averages, or EMA's, this indicator evaluates use the 8, 21, 34, 55, 89, 144, 200 time periods. The Stats tool is 2 indicators. One Bullish, and one Bearish. Here are the same standard EMA's overlaid so we can associate what the different color areas in the stat tool are referring too.
The display for the Stats tool is separated into two sections. The first section gives you detailed information historical and current, and the second shows a pullback analysis in relation to other EMA's. Very useful for determining which moving average is most significant to the chart you are working on.
