I have created this Indicator based on the concept of mean reversion. The indicator measures the distance from the Moving Average and allows the trader to plot horizontal support and resistance lines based on the historical levels of maximum deviation.
Multiple sets of the indicator can be added based on different Moving Averages. In the example above I have added a set for the 200MA, 50MA and 20MA.
The idea is that if the standard deviation of multiple MA’s are being challenged, the price is likely due a pullback or a possible direction change might be imminent.
Input includes the Moving Average Period as ‘MAPeriod’ (Default is set to 200).
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HDev = average[MAPeriod](close)+1*STD[MAPeriod](average[MAPeriod](close)) LDev = average[MAPeriod](close)-1*STD[MAPeriod](average[MAPeriod](close)) Return HDev-high coloured(255,0,0) AS "Hdev", low-LDev coloured(0,255,0) AS "Ldev", 0 coloured(0,0,0) AS "0" |
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Thanks!
Is it possible to change it to highs and lows rather than open and close?