It allows to visually know the price trend. It consists of a main average (in black) and two pairs of averages, one fast and one slow.
The fast pair of averages forms the "submarine" pattern (in yellow) that is used to detect recovery from a correction. This pattern is very useful for entering the market during an up or side trend.
Longer averages form a characteristic pattern at the bottom of a sharp decline, signaling buying. This pattern occurs when a "submarine" is formed and below it the main average and one of the long averages turn around, painting the background in purple. It is the "harlequin" pattern.
another one of the patterns (indicated with blue arrows) shows us the moment in which there is more buying interest, giving very good long entries.
There are many other patterns and crosses that can be taken into account and the formation of divergences between the price and the averages of EP MA DIFF is also important.
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Notas de prensa
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Longer averages have been added to allow for longer term trend detection. This allows better filtering of the input signals