Delta Indicator: Average Price and Logarithmic Price Change
Summary
The Delta indicator plots two series: the bar’s average price, calculated from its open, high, low, and close, and a second series derived from the decimal logarithm of the ratio between the previous average price and the current one. Its stated formula adds this logarithmic difference to the current average price to produce Delta. The indicator has no configurable inputs.
The document describes the calculation but provides no chart interpretation, trading rules, performance evidence, or guidance on how to use the lines. It also does not discuss limitations such as sensitivity to price changes or how the formula behaves across instruments and timeframes. Treat it as a definition of a plotted calculation rather than evidence of a standalone trading strategy.
Key ideas
- The indicator calculates a bar average from open, high, low, and close prices.
- A second series uses the base-10 logarithm of the previous-to-current average price ratio.
- Delta is defined as the current average price plus that logarithmic difference.
- The indicator has no input parameters, and no trading results or usage rules are provided.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.