Average Distribution of Price
The original script was posted on ProRealCode by user Nicolas.
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 treshold.
This indicator could even be use for scalping purpose in the same direction of the price when it reach the upper or lower lines.
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 treshold.
This indicator could even be use for scalping purpose in the same direction of the price when it reach the upper or lower lines.