Hi all, I'm trying to recreate an indicator for TradeStation from a program I have called tradeguider. They call it 'the diamond indicator' which is basically a moving average. That much I can handle. But the 'diamonds' change colour signaling a change in short term trend. Red is a downtrend, white signals a possible reversal and green is up.
I was just wondering if anyone knew the criteria for this change? It appears to be some kind of crossover signal but the folks at tradeguider say that's not it.
If anyone has any theories I'd love to hear them. If not, thank you for your time.
This guy seems to have ripped it off nicely at hawkeyetraders:
