PDI: Marking Price Changes Between Consecutive Bars
Summary
PDI is a configurable indicator that compares the applied price on the previous bar with the applied price on the current bar. It places a signal mark when the difference reaches a user-defined threshold. A positive difference places the mark at the current bar’s low; a negative difference places it at the high.
The inputs are the price-difference threshold and the applied price used in the calculation. The description explains the signal’s placement and basic logic, but provides no performance evidence, trading rules, or guidance on selecting a threshold. It is a simple visualization of bar-to-bar price movement, so its usefulness depends on how a trader interprets and tests the marks in a broader method.
Key ideas
- PDI compares an applied price across the previous and current bars.
- A user-defined price-difference threshold determines when a signal appears.
- Positive differences place marks at the current bar’s low, while negative differences place them at its high.
- The description gives no evidence that the signals predict future returns.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.