Here is the formula to get a signal when the maximum difference between these four moving averages is lower than a specific threshold.
The 4 moving averages merge in one point.
The "0.3" is the threshold level. This means that if the difference between sma44 and sma10 is less than "0.3" then the formula considers that the value of these moving averages is the same.
Trading financial instruments, including foreign exchange on margin, carries a high level of risk and is not suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in financial instruments or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.
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