Price Action Indicator Based on Open and Close Deviations from EMA100

Summary

The document defines a price-action indicator by comparing each candle’s open and close with a 100-period exponential moving average. It averages the two deviations: the open minus the EMA and the close minus the EMA. The resulting value expresses where the candle’s opening and closing prices sit, on average, relative to that moving reference. The page provides a short ProRealCode-style formula, but does not explain how to interpret specific values or combine the measure with a trading strategy.

No empirical evidence, backtest, or risk analysis is included, so the indicator’s predictive value is not established. The formula describes a transformed price distance rather than a normalized measure; its magnitude can therefore depend on the instrument’s price scale. The remainder of the document concerns website account data and privacy and does not add trading guidance. Any use as a signal would require separate testing and a clearly specified decision rule.

Key ideas

• The indicator uses a 100-period exponential moving average as its reference level.
• It averages the open-to-EMA and close-to-EMA price differences for each candle.
• The output represents an unnormalized price distance from the moving average.
• The document gives no trading rules, backtest, or evidence that the indicator predicts returns.

Tags

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