RealValueExtended: A Slowly Turning Price Reference Indicator

Summary

RealValueExtended is presented as a price reference intended to estimate underlying market value while turning more slowly than market price. It adds a smoothing parameter to an earlier RealValue indicator, with the stated aim of making the line slower to change direction and better fitted than a moving average. The description gives a qualitative rule: the indicator rises when price is above it and rising, and falls when price is below it and falling. Its rate of movement is tied to the average high-low differences of bars over a chosen period.

The indicator can be used on its own or paired with another instance using different parameters, with crossings serving as potential signals. The document gives no precise formula, parameter guidance, market examples, backtest, or performance evidence, and it does not define how to handle conditions outside the stated rise and fall cases. Traders would therefore need to specify and validate its calculation and crossing rules before relying on it; the claim that it fits better than a moving average is not supported with comparative evidence.

Key ideas

• The indicator is designed to change direction more slowly than market price.
• A smoothing parameter extends an earlier version of the RealValue indicator.
• Its direction depends on the relationship between price and the indicator, as well as price movement.
• The indicator's rate is linked to average bar ranges over a selected period.
• Crossings between versions with different settings are suggested as possible signals, without validation evidence.

Tags

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