The_Caretaker

Price Moving Average Ratio & Percentile

Introducing the Price Moving Average Ratio & Percentile indicator

A simple indicator which calculates :

  • The ratio between a chosen source price and a user defined moving average ( PMAR ) or
  • The percentile of the ratio between the chosen source price and a user defined moving average over an adjustable lookback period ( PMARP )

It then displays either the PMAR or PMARP as a line plot with optional user defined signal moving average.
It also plots an optional Visual Alert Level line and background signal bars.

Indicator Settings

Main Properties :

  • Source Price .. choice of price values or external value from another indicator ( default )
  • Line Plot Type .. choice between PMAR or PMARP ( default PMAR )

Price Moving Average Ratio Settings :

  • PMAR Length ..The time period to be used in calculating the Moving Average for the Price Moving Average Ratio and the PMAR component of the PMARP. ( default )
  • PMAR Type ..The type of Moving Average which creates the MA for the Price Moving Average Ratio and the PMAR component of the PMARP. ( default [ VWMA ] )

Price Moving Average Ratio Percentile Settings :

  • PMARP Lookback .. The lookback period to be used in calculating the Price Moving Average Ratio Percentile.

Line Plot Color Settings :

  • Gives a choice between a user defined solid color, and a choice of "Blue Green Red", or "Blue Red" spectrum palettes.

Signal Moving Average Settings :

  • Signal MA Length ..The time period to be used in calculating the Signal Moving Average for the Line Plot ( default )
  • Signal MA Type ..The type of Moving Average which creates the Signal Moving Average for the Line Plot ( default [ SMA ] )

Signal Moving Average Color Settings :

  • Gives a choice between a user defined solid color, and a choice of "Blue Green Red", or "Blue Red" spectrum palettes.

Visual Alert Level Settings :

  • Alert level .. Level which activates the background signal bars ( default )

Typical Use case for the Price Moving Average Ratio

Traders and Technical Analysts will typically use the PMAR as an accumulation signal generator.
To do this....

  • Set a level below 1 where it has been historically profitable to accumulate the asset in question on the chosen timeframe.

Typical Use case for the Price Moving Average Ratio Percentile

Traders and Technical Analysts will look at the PMARP to judge how far away current PA is away from the defined MA based on a statistical measure of the lookback period in a percentile format.
Traders and Technical Analysts will typically use the PMAR as an accumulation signal generator.
To do this...

  • Set a low level where it has been historically profitable to accumulate the asset in question on the chosen timeframe.

Note : The default settings are specifically set up for use on the daily timeframe with a MA of 140 equating (approximately) to the 20 week moving average.

This is not a stand alone indicator and should be used in combination with volatility and momentum indicators for a more effective trading edge.
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Where I am a moderator, my username there is The Caretaker also.
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