Market EKG: Comparing Recent OHLC Values with Prior-Bar Averages

Summary

Market EKG is a price-only oscillator intended to show how a recent candle’s open, high, low, and close compare with earlier bars. It takes the prior bar’s OHLC values, compares them with averages of the two bars before that, and plots four resulting differences around a zero line. Positive or negative readings show the direction of each comparison; the combined traces are described as resembling an electrocardiogram.

Key ideas

• The indicator compares the previous bar’s OHLC values with averages from two earlier bars.
• It plots separate differences for open, high, low, and close against a zero reference.
• The author presents the display as a price-based view of volatility for markets where volume indicators may be unavailable.
• The document provides no backtest, signal rules, or evidence that the oscillator predicts returns.

Tags

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