Moving average slope
How fast a moving average is rising or falling, as a percent per bar.
What it shows
The slope of a moving average tells the direction and speed of the trend it follows. We take the 50-bar average, and compute its percent change over the last 10 bars.
A positive slope means the average is rising. A flat average shows a sideways market.
How we find it
The same code that draws it on your chart follows these steps, with the same result every time.
- Compute the 50-bar SMA.
- Slope = (SMA today ÷ SMA 10 bars ago − 1) × 100.
- Plot the slope under the price.
- Mark zero.
Starting values: Average 50 bars; Window 10 bars. These are proposed and will be tuned on real price data before launch.
How to read it
- The gray line is the 50-bar average.
- The panel shows its slope.
- Zero means flat.
Status labels you may see
| Label | What it means |
|---|---|
| Rising | Slope above +0.5%. |
| Flat | Between −0.5% and +0.5%. |
| Falling | Slope below −0.5%. |
What cancels it
Nothing cancels it.
What traders check next
- Price relative to the average.
- Length of time the slope has been positive.
- Other averages.
Limits
- Lags the price.
- Thresholds are choices.
- Depends on the average length.
Try it in forecastviz
- Open any ticker and choose Trend strength and direction → Moving average slope in the left menu.
- Switch between 6M, 1Y, 3Y to see how the picture changes.
- Compare with Simple moving average and Linear regression slope on the same chart.
Questions
Why 10 bars?
A short window for the change.
Why check slope?
Price above a falling average is a different state than above a rising one.
Related trends
Further reading
- Wilder, New Concepts in Technical Trading Systems
- Chande and Kroll, The New Technical Trader
- Hosoda, Ichimoku Kinko Hyo
- Murphy, Technical Analysis of the Financial Markets
- Kaufman, Trading Systems and Methods
Educational only. Not financial advice, and not a price forecast. Charts are drawn by code from past price data, which may be delayed.