An advantage of using this kind of calculation is the possibility of separating the data into positive (buy pressure) and negative (sell pressure) components. The bi-directional character shows a slightly overhang in one of the directions, which can be used to detect a trend. A Moving Average of the users choice shell smoothen the overhang of the Relative Bi-Directional and show a trend direction. Similar to the math of the as standard a Relative Moving Average is preferred. If the Moving Average is in the positive range (0 to 100) it indicates a , else if the Moving Average is in the negative range (0 to -100) it indicates a . External Indicators can use a provided Trend Shift Signal which switches from 0 to 1, if the trend becomes or from 0 to -1, if the trend becomes .
The user should know, that in this Indicator the starting point of the Moving Averages always begins at the first bar, because the starting progress is approximated appropriately. Most Moving Averages require a minimum number of bars to be calculated, which is chosen with the Moving Average Length. In this cases the length used will be automatically reduced in the background until the number of bars is sufficient to match the chosen length. So if data history is very short, the Indicator can be used never the less as good as possible.
It is feasible to switch the Indicator on a higher timeframe, while staying in a lower timeframe on the chart. This can be useful for making the indication cleaner, if the Moving Average is to choppy and shows too many false signals. On the other hand the benefit of a higher timeframe (or a higher Moving Average Length) is paid with higher latency of the signaling. So the user has to decide what the best setting in his case is.
This Indicator can be used with all kinds of charts. Even charts with percentage or negative values should work fine.
Moreover a switch is added to show Moving Averages for Volatility Lows and Highs. This can be used for better identification of volatility contraction/expansion and extraordinary volatility peaks.