Hi Guys n Gals,
Have an idea in my head, and need to know if an indicator exists which will show me as an oscillator how far the current price is away from the current MA.
Its an attempt to tell me how a price is moving in comparison to its MA and also to help further gauge overbought/oversold conditions.
In my head I am doing the following calculation....
1) Current Price less 20MA (eg 0.0010)
2) Divided by the average of past 20periods of calculations from 1) above. (eg 0.0025)
therefore 0.400 = Price Difference from Moving Average (PDMA)
In essence giving me a description of how the current prices distance away from the MA is performing in comparison to the average distance away the MA over the same period of candles.
then say the price moves down to give
1) current less 20ma = 0.0005
2) divided by average diff for 20 periods = 0.0023
therefore 0.217
and finally say price falls again
1) current price less 20ma = -0.0012
2) divided average diff for 20 periods = 0.0015
therefore -0.80
Ultimately this should provide a nice graphical representation, oscillating between 1, 0 and -1. With a view to visually representing how the current price is performing against its Moving Average. By analysing how price is deviating from it moving average.
Ultimately I have this notion that I can analysis how this deviation is performing against market norms, giving signals as to whether the Price Difference from MA score (PDMA) is within its Standard Deviation range.
Obviously the indicator would have all the usual MA settings, Exponential Smooth, Open Close etc, but would also allow the comparison of two different MAs eg price difference from 20MA, compared with average difference of 50MA
Hope this makes some form of sense, and that it exists, but unfortunately my knowledge of wider indicators and their composition is lacking, and so hence my asking the forum. It may turn out to be absolutely useless, but i'd love to see the results and see if it could fit into a trading strategy.
Thanks in advance for any help
Kind Regards
Simon
Have an idea in my head, and need to know if an indicator exists which will show me as an oscillator how far the current price is away from the current MA.
Its an attempt to tell me how a price is moving in comparison to its MA and also to help further gauge overbought/oversold conditions.
In my head I am doing the following calculation....
1) Current Price less 20MA (eg 0.0010)
2) Divided by the average of past 20periods of calculations from 1) above. (eg 0.0025)
therefore 0.400 = Price Difference from Moving Average (PDMA)
In essence giving me a description of how the current prices distance away from the MA is performing in comparison to the average distance away the MA over the same period of candles.
then say the price moves down to give
1) current less 20ma = 0.0005
2) divided by average diff for 20 periods = 0.0023
therefore 0.217
and finally say price falls again
1) current price less 20ma = -0.0012
2) divided average diff for 20 periods = 0.0015
therefore -0.80
Ultimately this should provide a nice graphical representation, oscillating between 1, 0 and -1. With a view to visually representing how the current price is performing against its Moving Average. By analysing how price is deviating from it moving average.
Ultimately I have this notion that I can analysis how this deviation is performing against market norms, giving signals as to whether the Price Difference from MA score (PDMA) is within its Standard Deviation range.
Obviously the indicator would have all the usual MA settings, Exponential Smooth, Open Close etc, but would also allow the comparison of two different MAs eg price difference from 20MA, compared with average difference of 50MA
Hope this makes some form of sense, and that it exists, but unfortunately my knowledge of wider indicators and their composition is lacking, and so hence my asking the forum. It may turn out to be absolutely useless, but i'd love to see the results and see if it could fit into a trading strategy.
Thanks in advance for any help
Kind Regards
Simon
