SMA Imbalance Oscillator
This oscillator is used for *mean reversion* strategies only.
This oscillator calculates the real-time distance of a price-point subtracted from the SMA, then compares it to the average distance to determine equilibrium imbalances. When the imbalance becomes less and goes under the signal line, a reversal is very likely.
Do not trade mean reversion during any news events.
This oscillator calculates the real-time distance of a price-point subtracted from the SMA, then compares it to the average distance to determine equilibrium imbalances. When the imbalance becomes less and goes under the signal line, a reversal is very likely.
Do not trade mean reversion during any news events.
Versionsinformation:
Added one additional line of code that will keep the oscillator centered at all times.
Versionsinformation:
Fixed an issue with the average look-back formula.
Versionsinformation:
Fixed an issue with the average look-back formula.
Versionsinformation:
More efficient coding for averaging function.