Average Penetration Bars with Flexible Price, Average, and Trend Rules

Summary

This indicator description is based on a method attributed to Markos Katsanos and a 2018 magazine article. It describes average penetration bars and adds configurable choices for how penetration is measured: the original method uses closing prices, while this version can also use highs or lows. It also allows the user to select among simple, exponential, smoothed, or linearly weighted moving averages.

The indicator includes two ways to determine trend: a conventional greater-than or less-than comparison, and an alternative approach credited to an online contributor. It can display either colored bars or colored candlesticks. The document does not define the penetration formula, explain the alternative trend calculation, or provide tested trading rules or performance results, so it describes indicator options rather than a fully specified or validated strategy.

Key ideas

• The indicator is based on a method attributed to Markos Katsanos and a 2018 article.
• Penetration can be evaluated using closing prices or, optionally, highs and lows.
• The averaging method can be simple, exponential, smoothed, or linearly weighted.
• Trend can be calculated by a conventional comparison or an alternative custom approach.
• The display can color bars or candlesticks, but the document gives no performance evidence.

Tags

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