Prices high above the moving average (MA) or low below it are likely to be remedied in the future by a reverse price movement as stated in an Article by Denis Alajbeg, Zoran Bubas and Dina Vasic published in International Journal of Economics, Commerce and Management
Here comes a study to indicate the idea of this article, Price Distance to its Moving Averages...
This script shows optional:
- distance between close price and Kijun-Sen
- distance btween Tenkan-Sen and Kijun-Sen
- Background color of current time frame
- Background color of the next higher time frame
FOLLOW twitter.com and twitter.com for designing the original script and idea with MAs
Follow twitter.com for making it VWMAs and finding the ultimate clout getting top signals of all time for Bitcoin on BITSTAMP:BTCUSD
I misspelled weighted on the chart, whatever.
This script implements a rebrushed distance-based pair trading strategy. In this strategy, normally they trade the difference between the prices of two instruments. This difference is also called spread. Here, however we’ll trade the difference between two time frames of one instrument. And that's the main trick. Common procedure consists of the following...
Calculate the distance of the price to a moving average. Also be able to identify if the average distance is decreasing or increasing based on signal line.
Length: The moving average length to measure against.
Source: The price input source use to measure the distance from.
Signal Length: The average of distance between Source and...
Adopted to Pine from systemtradersuccess.com
They wrote that this average is designed to be a robust version of a moving average to reduce the impact of outliers, but I dont see a significant difference comparing it with SMA. So, I published it for the educational purposes.
To learn more about the robust...
Calculating distances in signal processing/statistics/time-series analysis imply measuring the distance between two probability distribution, i am not really familiar with distances but since some formulas are in closed form they can be easily used for volatility estimation. This volatility indicator will use three methods originally made to measure...
This shows the distance to a moving average of your choice as histogram, you can select your moving average at input "Oscillator Source".
You need to have a plot on your chart (like EMA or anything else) so you can connect this indicator to it. I used Ichimoku Cloud's 20 period Conversion line (blue line) as example on the chart.
You can look for divergence on...
This script holds several useful functions from statistics and machine learning (ML) and takes measurement of a volume weighted distance in order to identify local trends. It attempts at applying ML techniques to time series processing, shows how different distance measures behave and gives you an arsenal of tools for your endeavors. Tested with BTCUSD.
Hi, this script comes from the idea that Ricardo Santos' Minkovski Distance Function is transferred to the period as a factor.
Minkowski distance is used as a percentage factor with the help of Relative Strength Index function.
Minkowski Distance Function Script :
And thus an...
copy pasted description..
Minkowski distance is a metric in a normed vector space. Minkowski distance is used for distance similarity of vector. Given two or more vectors, find distance similarity of these vectors.