Using a Daily Moving Average as an Intraday Mean-Reversion Reference

Summary

This indicator calculates a moving average from daily closing prices while a chart is displayed on a shorter timeframe. It loops over the requested number of daily observations, sums their closes, and divides by the period count. The intended use is to provide a daily reference mean for intraday mean-reversion entries without native multi-timeframe support. The description also notes that daily open, high, or low values could be used as alternatives.

The guide explains that the usable lookback depends on chart interval, preload limits, and data provider; it gives a table relating several minute intervals to maximum historical days under a stated preload setting. It warns that one provider may allow fewer days and that the indicator must be added to the price pane to appear there. No trading results or validation are supplied, so the moving average is a charting aid rather than evidence of a profitable mean-reversion strategy.

Key ideas

• The indicator computes a selected-period average of daily closes for use on a lower timeframe.
• The daily average can serve as a reference mean for intraday mean-reversion setups.
• Available lookback depends on chart interval, preload capacity, and data provider.
• The document offers implementation guidance but no evidence of strategy profitability.

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