Overview
Moving average traders will place a trade based on whether the current price is above or below a moving average of the assets price. However, the price is typically volatile, which can cause this measure to experience some volatility. As such, many traders will define a long term moving average and a short term moving average. The trend of the asset is determined by whether the short term moving average is above or below the long term average.
Two Moving Averages
let ma = await import("/lib/finance/traders/price-action/v1.0.0/traders.mjs");
let td = await import('/lib/finance/backtest/v1.0.0/trade.mjs');
let prices = [{date:'2000-01-01', close:100},{date:'2000-01-02', close:100},{date:'2000-01-03', close:100},{date:'2000-01-04', close:100},{date:'2000-01-05', close:100},];
//follow the trend
let trader = ma.movingAverage2('close', 3, 5, 1, 0);
let trades = await td.calculateTrades(prices, trader);