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EightBallDuVal

Price Outpaces Moving Average

EightBallDuVal  
Moving Averages Trend Analysis markettops topsignal movingaveragepriceaction
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movingaverage trendanalysis markettops topsignal movingaveragepriceaction
With inputs for the moving average, Bullish overshoot percentage, and bearish overshoot percentage, this indicator is attempting to show market tops based on the difference between the current price of an asset and how far away it is from its moving average.

If you have the bullish overshoot percentage set to 1.5:

let's say price is currently at 20,000 and the moving average is around 6500.

The script calculates 20,000/6500 = 3.07

Then, there is a boolean comparison asking if 3.07 > 1.5.

Since it is, the script will create a "SHORT" flag above that candlestick.

A similar process happens for the "LONG" flags.

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

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.

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