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Indicator Description ​

DMA (Difference of Moving Average) is a trend indicator that reflects price trend changes by calculating the difference between two moving averages of different periods.

Function Information ​

  • Function Name: DMA
  • Input Parameters: Open
  • Parameter Settings: timeperiod1 (default: 13), timeperiod2 (default: 55)
  • Output: ddd, ama

Calculation Principle ​

DMA is calculated using the following formula:

DDD = MA(Close, timeperiod1) - MA(Close, timeperiod2)
AMA = MA(DDD, 5)

Where MA is the moving average.

Usage Scenarios ​

  1. Trend direction judgment
  2. Trend strength analysis
  3. Trend reversal identification
  4. Trading signal generation

Usage Recommendations ​

  1. DMA turning from negative to positive can be seen as a buy signal
  2. DMA turning from positive to negative can be seen as a sell signal
  3. Use in combination with other trend indicators
  4. Pay attention to the impact of parameter settings