Bias Indicator: Measuring Price Deviation from a Moving Average

Summary

The document introduces the Bias indicator, which expresses a closing price’s percentage deviation from its moving average over a chosen number of days. The calculation compares the close with the moving average, subtracts the average, and scales the difference by the average. A threshold is also listed among the indicator’s inputs, though the text does not explain how to use it.

This measure can describe whether price is above or below its recent average and by how much, making it a basic technical indicator that could be incorporated into a signal study. The entry is part of a series testing technical indicators, but the supplied content contains no test results, signal rules, parameter guidance, or discussion of market conditions. The referenced indicator meaning is not included, so interpretation beyond the calculation and likely directional deviation cannot be established from this document alone.

Key ideas

• Bias measures the closing price’s percentage distance from a moving average.
• The calculation requires a close series and a selected moving-average lookback.
• A threshold is mentioned as an input, but its role is not described.
• The available text gives no empirical results or tested trading rules.

Tags

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