Absolute and Relative N-Period Price Difference
Summary
The Difference2 indicator plots the change between the selected price and its value a chosen number of periods earlier. It presents the result as a histogram and offers a period input, a calculation mode, and a choice of applied price. This makes the same basic comparison available in either price units or percentage terms.
In absolute mode, the indicator subtracts the earlier price from the current price. In relative mode, it divides that change by the earlier price and multiplies by one hundred. The description supplies these formulas but gives no chart examples, tests, or evidence that a particular period or mode is useful for trading. The measure can summarize recent price movement, but interpretation depends on the instrument, price scale, lookback, and selected price series. It is a calculation description rather than a complete strategy, and it does not define signals, risk controls, or validation procedures.
Key ideas
- The indicator compares the selected price with its value a configurable number of periods earlier.
- Absolute mode reports the difference in price units.
- Relative mode expresses the difference as a percentage of the earlier price.
- The document defines the calculation but provides no trading rules or performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.