A Slow-Moving Price Indicator Based on Recent Bar Ranges
Summary
The document describes an indicator intended to estimate a slower-changing reference value for the market than the observed price or a moving average. Its direction is linked to the relationship between price and the indicator: it rises when price is above it and rising, and falls when price is below it and falling.
The indicator’s rate of movement is proportional to the average difference between bar highs and lows over a user-selected period. This makes recent bar ranges the stated input for controlling how quickly the reference adjusts. The document gives no formula for initialization or exact update calculations, and provides no charts, backtests, or evidence that the indicator improves on moving averages. It is a brief concept description rather than a validated trading rule.
Key ideas
- The indicator is designed to change direction more slowly than market price.
- It rises when price is above it and the indicator is already moving upward.
- It falls when price is below it and the indicator is already moving downward.
- Its movement speed depends on the average high-to-low range over a selected period.
- No calculation details or performance evidence are supplied.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.