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Percent of Time Spent Above a Moving Average

by Brian Brown, 4015 days ago
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This indicator returns the percent of time a security spent trading above a certain moving average. You just have to specify the lookback period and the moving average period and the indicator will calculate the number of bars where the security traded above its N-bar moving average and divide that result by the total number of bars (lookback).

Example:
perf1 = perf(PTAboveSma(100, 10), 20);
perf2 = perf(close, 20);
buy = cross(close, sma(10)) and perf1 > 0 and perf2 < 0;


The above trading system enters long when the security crosses above its 10-bar simple moving average and at the same time there is a divergence between the price series and the percentage of time spent above the 10-bar moving average. The divergence is detected by comparing the 20-bar rate of return of the close series and the "PTAboveSma" trading indicator.



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Type: Trading Indicator

Object ID: 1284


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Style:
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Trading financial instruments, including foreign exchange on margin, carries a high level of risk and is not suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in financial instruments or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.