Average Penetration with Alternative Price Inputs and Moving Averages

Summary

The document describes a configurable version of an average-penetration technical indicator, referring to an earlier article by Markos Katsanos. It says the original approach uses closing prices to assess penetration, while this version also lets the user choose high or low prices. For smoothing, it offers four alternatives: simple, exponential, smoothed, and linear weighted moving averages.

This is a description of indicator options rather than a complete trading method. It gives no formula, parameter settings, entry or exit rules, backtest, or performance evidence, so readers cannot assess how the variants affect signals or results from this text alone. The choices could support comparisons between price inputs and smoothing methods, but any trading use would require the full indicator definition and independent testing.

Key ideas

• The indicator is presented as an adaptation of an earlier average-penetration method.
• The original version described here uses closing prices, while the adaptation can use highs or lows.
• Four moving-average types are offered for smoothing: simple, exponential, smoothed, and linear weighted.
• The document provides no formula, trading rules, or evidence of performance.

Tags

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