This indicator measures the vertical distance form the current close to the MA of your choice. I find that it does not work best as an oscillator, but it works well for providing early signals for taking profits when trend continuating. For example, if you go short due to a retracement to the MA (of your choice) take profits when a bearish trendline is broken (signalling the start of a bullish correction) that corresponds to the highs of the chart. The logic behind this indicator is that the breakouts of trendlines of an assets difference from an MA will precede corresponding breakouts of trendlines drawn on raw price. Kind of like Momentum, except it takes trend into account. Momentum has the same leading feature when it comes to drawing trendlines , but trendlines will be harder to draw due to the Momentum indicators oscillatory behavior.
It is originally called as KRI.. 1960s japanese use to use it. Then it disappeared after the coming of RSI. good work.
STUKOVA
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hi!) how can I identify a true trend line?
CemoneS
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nice work. can u please code the trendline on ma extension curve ?
Tom1trader
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Thanks! I like this as am used to following sma50 and percent difference extremes to guess pauses or reversals (peaks and troughs of the difference often show a consolidation or reversal in price).
Tom1trader
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Interesting, thanks!
LegendaryStick
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lol idk why it glitched out and posted 3 at a time