Average Change Indicator: Smoothed Price Differences

Summary

This brief indicator description defines average change as a moving average of successive price differences. For each observation, it subtracts the previous applied price from the current applied price to produce a change series, then smooths that series over a chosen period. Users can configure the calculation period, moving-average method, and applied price.

The text gives the calculation concept but does not explain how to interpret the resulting values, propose entry or exit rules, or provide tests or performance evidence. It is therefore a component definition rather than a complete trading strategy. The source is identified as an existing code translation, and no further details about initialization, missing observations, or method-specific behavior are supplied.

Key ideas

• The indicator first calculates the difference between the applied price and its prior value.
• It smooths those price differences with a selected moving-average method and period.
• The applied price, period, and calculation method are configurable inputs.
• The description gives no signal interpretation, trading rules, or performance evaluation.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.