MOVING AVERAGE SPREAD INDICATOR

Type : Indicator, Name : Moving Average Spread Indicator

{MA Spread Indicator
Plots the difference between a short and long EMA as a percentage of
the maximum difference see over the last LookbackLen bars

ghkramer 10Jan05}

input: Price(Close), ShortMALen(7), LongMALen(13), LookbackLen(50);
var: Sema(0), Lema(0), dema(0), Maxd(0), Spread(0);

Sema = xAverage(Price, ShortMALen);
Lema = xAverage(Price, LongMALen);
dema = Sema — Lema;
MaxD = Highest(AbsValue(dema),LookbackLen);

if (MaxD > 0) then
Spread = 100*(dema/MaxD);

plot1(Spread, «Spread»);
plot2(0, «Zero»);

if Spread > 90 or Spread < -90 then
setplotcolor(1, Blue)
else
setplotcolor(1, Red);

if Spread >= 90 then begin
if barStatus(1) = 2 then
alert(GetSymbolname + » Spread at High Extreme»);
end;

if Spread <= -90 then begin
if barStatus(1) = 2 then
alert(GetSymbolname + » Spread at Low Extreme»);
end;