Script:                RTT 1 Slope

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Purpose:            Draw the Gradient (slope) of a single Moving Average. This graph displays in its own window whether rise or fall of a Moving Average is accelerating or slowing down.
To save time, it is recommended to set the global chart parameters to "calculate visible points only". This means the script calculates and draws only for the days visible in the current window. (see "Parameters" below)

If you zoom out and wish to expand the plot, right-click inside the window, select the script's Properties, and click "OK". That will redraw the plot for the larger time frame.

Please note that plotted scripts work on any time scale. Substitute "tick" (week, hour, month...) for "day" where appropriate.

The theory says that, the steeper a Moving Average rises, the greater the momentum, thus the greater the likelihood of the price continuing to rise. Conversely, if a MA begins to level off or drop, chances are the price is heading down as well.

I would class this indicator as secondary, to be used only in support of other, more immediate, indicators. An example of a strategy might be: "Enter when (insert your first choice) but only if the gradient of (single MA, parameters as per below) is accelerating."

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References:        Barry Littler on Technical Indicators
Prophet on EMA
Prophet on WMA
incrediblecharts on Single Moving Average

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Parameters :       Period = period, over which MA is calculated
Slope Length = number of days, over which the gradient is calculated. Shorter values mean more noise, longer periods have a smoothing effect
MA Type = calculation method for the MAs: Exponential, Weighted, or Simple

Global (File) Parameter Setting for Chart to draw plotted scripts faster:

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Example

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