How can I plot an indicator of an indicator?

Chartists can apply a variety of indicators to indicators. While this might seem like throwing some rice on your pasta, sometimes a moving average or Rate-of-Change can help identify turning points in the indicator. The indicator of an indicator option can be seen by clicking on “advanced options”, which is just to the right of the selected indicator.


The example below shows three indicators with three helping indicators. First, a 12-period Rate-of-Change was added to RSI. Note that the Rate-of-Change scale is on the left side. Moves into positive territory signal an upside surge in RSI. Moves into negative territory signal a downside plunge in RSI. Second, a 50-day SMA was applied to the Accumulation Distribution Line. There is also a 50-day SMA for QQQQ. Chartists can now compare how the ETF reacts to its 50-day and how the indicator reacts to the same moving average. Third, a 10-period EMA was applied to the Money Flow Index (MFI) to identify upturns and downturns. Downturns from overbought or oversold levels can help anticipate turns in the ETF.


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