Average Penetration Histograms with Selectable Price and Average Types

Summary

This indicator description presents a configurable version of the average penetration histogram, based on an approach attributed to Markos Katsanos and a June 2018 magazine article. It lets users define penetration using closing prices or high and low prices, and choose among simple, exponential, smoothed, and linear weighted moving averages.

The indicator also offers two histogram calculation modes: a conventional comparison and a custom method credited to an online contributor. The document explains the available variations but does not specify the calculation formulas, trading rules, parameter values, or how to interpret resulting signals. It provides no backtest, market examples, or performance evidence, so it should be treated as a description of indicator options rather than a validated strategy. The effectiveness of any settings would depend on the instrument, timeframe, and testing method.

Key ideas

• The indicator is based on an average penetration approach attributed to Markos Katsanos.
• Penetration can be assessed using closing prices or high and low prices.
• The averaging method can be selected from four moving average types.
• Users can choose between conventional and custom histogram calculations.
• The description does not provide formulas or evidence of trading performance.

Tags

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