A sophisticated indicator that measures price deviation from multiple moving averages using percentage and ATR-based distance, helping traders identify potential mean reversion and overextended market conditions.
Explore complementary indicator rolesHow it works
The indicator calculates the distance between current price and multiple moving averages (10 EMA, 20 SMA, 50 SMA, 100 SMA, 200 SMA) using both percentage and ATR-based measurements. It employs a dynamic threshold system that uses rolling standard deviation to determine historical volatility.
When price moves beyond predetermined thresholds, the indicator plots colored dots above or below price bars. These dots represent how significantly the price has deviated from its average trajectory, with different colors and positions indicating the extent and direction of the deviation
Why it may be useful
This indicator provides traders with a nuanced view of price momentum and potential mean reversion opportunities. By visualizing how far price has strayed from key moving averages, traders can identify potentially overbought or oversold conditions.
The multi-dimensional approach using both percentage and ATR measurements offers a more comprehensive assessment of price extension. Traders can use this information to make more informed decisions about entry, exit, and risk management strategies in various market conditions
When to explore it
The indicator works best in markets with clear trending characteristics and moderate to high volatility. It is particularly useful when traders want to identify potential pullbacks, trend exhaustion, or mean reversion opportunities.
Swing traders and day traders can leverage this tool to spot when prices have moved too far from their average trajectory. It is most effective in liquid markets with consistent price movements, such as major stock indices, forex pairs, and actively traded commodities
Keep exploring
What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
