diff --git a/Indicators/MyIndicators/Authors/Ehlers/5_Ehlers_Hybrids/MADH_Chart_Overlay.md b/Indicators/MyIndicators/Authors/Ehlers/5_Ehlers_Hybrids/MADH_Chart_Overlay.md new file mode 100644 index 0000000..b78efd7 --- /dev/null +++ b/Indicators/MyIndicators/Authors/Ehlers/5_Ehlers_Hybrids/MADH_Chart_Overlay.md @@ -0,0 +1,34 @@ +# MADH Chart Overlay + +## 1. Summary + +The **MADH Chart Overlay** is a visual companion tool for the `MADH_Pro` oscillator. While the oscillator shows the *difference* between two moving averages in a separate window, this indicator plots the actual **Hann-Windowed Moving Averages (HWMAs)** directly on the price chart. + +It allows traders to visualize the "Thinking Man's" moving averages that drive the MADH signals, providing context on trend direction and the separation between the fast and slow trends. + +## 2. Relation to MADH Oscillator + +This indicator uses the **exact same calculation engine** (`Windowed_MA_Calculator.mqh`) and logic as the `MADH_Pro` oscillator. + +* **Gold Line (Fast HWMA):** Corresponds to the `Filt1` component of the MADH. +* **Red Line (Slow HWMA):** Corresponds to the `Filt2` component of the MADH. + +**Visual Correspondence:** + +* When the **Gold line crosses above the Red line**, the MADH Oscillator crosses **above zero**. +* When the **Gold line crosses below the Red line**, the MADH Oscillator crosses **below zero**. +* The vertical distance between the two lines represents the magnitude of the MADH histogram. + +## 3. Parameters + +To ensure the overlay matches your oscillator, you must use identical settings: + +* **Short Length (`InpShortLength`):** Period of the Gold line. +* **Dominant Cycle (`InpDominantCycle`):** Used to calculate the period of the Red line. + * *Formula:* $\text{Slow Period} = \text{Short Length} + \text{round}(\frac{\text{Dominant Cycle}}{2})$ + +## 4. Usage + +* **Trend Visualization:** The slope and separation of the two lines give an immediate visual cue about trend strength. Widening lines indicate accelerating momentum. +* **Dynamic Support/Resistance:** The Hann-Windowed MAs are extremely smooth and often act as dynamic support (in uptrends) or resistance (in downtrends). +* **Crossover Signals:** Use the crossover of the Gold and Red lines as a visual confirmation of the trend change signaled by the oscillator.