Distance % from sma

This indicator measures the percentage distance between the current price and its Simple Moving Average (SMA). It displays how far price has deviated above or below the moving average, expressed as a percentage.

Default setting is a 36-period SMA, though this can be adjusted. The zero line (red) represents when price equals the SMA. Positive values indicate price is above the average, while negative values show price is below.

The step line visualization makes it easy to identify overbought/oversold conditions and potential mean reversion opportunities. When the distance percentage reaches extreme levels, it often signals that price may be due for a pullback toward the mean.

Useful for identifying:
- Overbought/oversold conditions
- Mean reversion setups
- Trend strength measurement
- Entry/exit timing based on deviation from average