Normalizing Moving Average Slope by Average True Range
Summary
The normalized moving average slope oscillator expresses the change in a moving average relative to average true range. Its formula takes the difference between the current and previous moving average, divides by ATR, and multiplies by 100. This scales the slope by recent price movement, giving traders a way to compare moving-average changes against the instrument’s volatility.
The indicator has inputs for the moving-average period and method, the ATR period, and the applied price. The document provides the calculation and defines these inputs, but gives no trading rules, examples, test results, or guidance for interpreting particular values. The normalized reading may help put slope measurements in context, but the note does not establish that it predicts returns or performs consistently across markets and settings.
Key ideas
- The oscillator scales the change in a moving average by average true range.
- Its output is multiplied by 100 after the moving-average difference is divided by ATR.
- Users can choose the moving-average period and method, ATR period, and applied price.
- The description provides a formula but no signal thresholds or performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.