Price Variation Percentage Relative to a Moving Average

Summary

PriceVar% measures the distance of price from a moving average as a percentage of that average. When the close is above the average, the described calculation uses the high; when it is below, it uses the low. The result is presented as a histogram with positive values for prices above the reference and negative values for prices below it. Larger absolute readings indicate a greater percentage distance from the average.

The document suggests using the indicator to assess movement intensity, identify possible overbought or oversold conditions, gauge variation around the average, or filter automated trades by a threshold. It says the moving-average period sets the reference horizon. No specific threshold, parameter value, backtest, or performance evidence is provided, and the description does not establish that extreme readings predict a reversal or confirm a breakout. The indicator’s output should therefore be treated as a descriptive distance measure, not a validated standalone signal.

Key ideas

• PriceVar expresses price distance from a moving average as a percentage of the average.
• It uses the high when price is above the average and the low when price is below it.
• The sign indicates which side of the average price occupies, while magnitude reflects distance.
• The document proposes uses in movement filtering and overbought or oversold assessment but gives no validation results.

Tags

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