Detecting Maximum Price Deviations from a Moving Average

Summary

The document describes an oscillator that measures price deviations from a moving average (MA). Its configurable inputs are the MA period, calculation method, applied price, and frame size. Within each frame, the indicator searches for the largest deviation from the MA and displays the detected extremes as histogram columns: downward deviations appear in blue and upward deviations in red.

This provides a visual way to identify unusually large moves relative to a chosen moving-average baseline. The description does not specify how frames are defined in time, how deviations are normalized, or whether the displayed extremes generate entry or exit signals. It also gives no market examples, parameter recommendations, backtest results, or discussion of false signals. The indicator is therefore presented as a visualization tool; its usefulness as a trading rule would require separate testing and interpretation.

Key ideas

• The oscillator compares an applied price with a configurable moving average.
• Its inputs control the average period, calculation method, price source, and frame size.
• It marks the largest downward and upward deviations in each frame with different histogram colors.
• The document does not provide trading rules or performance evidence.

Tags

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