Glitch Index: Measuring Price Deviation with a Moving Average
Summary
The Glitch Index is a technical indicator designed to express how far an applied price deviates from a moving average adjusted by the moving average’s rate of change. Its inputs are the moving average period and method, the ROC lookback period, and the price series used in the calculation. The indicator scales the difference between the applied price and the adjusted average by the price itself, then multiplies it by 100.
The adjustment modifies the moving average according to its change over the ROC period, so the resulting value reflects both price deviation and recent movement in the average. The document says the indicator appeared in a 2004 magazine issue, but provides no performance tests, trading rules, parameter recommendations, or evidence that a particular threshold predicts returns. It therefore explains a calculation rather than validating a standalone strategy; traders would need to test its behavior and use in their own markets and data.
Key ideas
- The indicator measures applied-price deviation from a moving average adjusted for its recent change.
- Users choose the moving average period and method, ROC period, and applied price.
- The calculation expresses the adjusted deviation as a percentage of price.
- The document provides no tested signal thresholds or evidence of trading performance.
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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.