OPEN-SOURCE SCRIPT
Average Distribution of Price
It reflects the extreme values of closed price over the last N periods. I add lines treshold that act like frontiers to pretend price are in its extremum values, theses ones are calculated as average of the higher and lower deviation from the N mean.
Because price will always revert to its mean, we can take opposite (contrarian) trades when price crosses upper or lower threshold.
This indicator could even be use for scalping purpose in the same direction of the price when it reach the upper or lower lines.
Because price will always revert to its mean, we can take opposite (contrarian) trades when price crosses upper or lower threshold.
This indicator could even be use for scalping purpose in the same direction of the price when it reach the upper or lower lines.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.