Let's keep things on topic

["Andy" <ronin@xxxxxxxxxxx>]

Hey,

Here's a brilliant idea: Let's keep things on topic, related to trading.

here's an idea I've been working on a while:

Usually, when prices moves above or below a moving average, most people jump
in. What I've always asked, is this move significant enough for me to trade?
Is there going to be any follow through or will this move collapse? So, what
I've done is create an indicator that measures the difference between a
price and its moving average. If this difference is significant enough, I
would consider the move significant enough to trade. The question remains to
be answer is how do we measure the significance of it? I've always used
standard deviations but there are other measures.

The gist of the code is below:

{Indicator: AD_Outliers}
Inputs: MaLen(21),Std(3),StdLen(50);
Vars: Mp(0),Diff(0),Rng(0);

Diff=C-Xaverage(C,Malen);
Rng=Std*StdDev(C-Xaverage(C,Malen),StdLen);

Plot1(Rng,"Upper");
Plot2(Diff,"Osc");
Plot3(-Rng,"Lower");

-----------------------------------

{System: AD_Outliers}
Inputs: MaLen(21),Std(3),StdLen(50);
Vars: Mp(0),Diff(0),Rng(0);

Diff=C-Xaverage(C,Malen);
Rng=Std*StdDev(C-Xaverage(C,Malen),StdLen);
Mp=Marketposition;

If MP<>1 and Diff crosses above -Rng then buy on close;
If Mp=1 and Diff crosses above 0 then exitlong on close;
If Mp<>-1 and Diff crosses below Rng then sell on close;
If Mp=-1 and Diff crosses below 0 then exitshort on close;
---------------------------------

It's pretty simple but effective. I've only used it on intraday, short term
charts (5 min or less). But I've tested this on the 60 S&P index, with the
60 min DSP0h and DSP0M acting as my out sample data. I will attached the GIF
file via the code list as the omega list will not allow me to post GIF of
the size I've created.