Median Proximity Percentile [AlgoAlpha]

📊🚀 Introducing the "Median Proximity Percentile" by AlgoAlpha, a dynamic and sophisticated trading indicator designed to enhance your market analysis! This tool efficiently tracks median price proximity over a specified lookback period and finds it's percentile between 2 dynamic standard deviation bands, offering valuable insights for traders looking to make informed decisions.

🌟 Key Features:

Color-Coded Visuals: Easily interpret market trends with color-coded plots indicating bullish or bearish signals.
Flexibility: Customize the indicator with your preferred price source and lookback lengths to suit your trading strategy.
Advanced Alert System: Stay ahead with customizable alerts for key trend shifts and market conditions.

🔍 Deep Dive into the Code:

Choose your preferred price data source and define lookback lengths for median and EMA calculations.
Pine Script®
priceSource = input.source(close, "Source")
and
Pine Script®
lookbackLength = input.int(21, minval = 1, title = "Lookback Length")
Calculate median value, price deviation, and normalized value to analyze market position relative to the median.
Pine Script®
medianValue = ta.median(priceSource, lookbackLength)
Determine upper and lower boundaries based on standard deviation and EMA.
Pine Script®
upperBoundary = ta.ema(positiveValues, lookbackLength) + ta.stdev(positiveValues, lookbackLength) * stdDevMultiplier lowerBoundary = ta.ema(negativeValues, lookbackLength) - ta.stdev(negativeValues, lookbackLength) * stdDevMultiplier
Compute the percentile value to track market position within these boundaries.
Pine Script®
percentileValue = 100 * (normalizedValue - lowerBoundary)/(upperBoundary - lowerBoundary) - 50
Enhance your analysis with Hull Moving Average (HMA) for smoother trend identification.
Pine Script®
emaValue = ta.hma(percentileValue, emaLookbackLength)
Visualize trends with color-coded plots and characters for easy interpretation.
Pine Script®
plotColor = percentileValue > 0 ? colorUp : percentileValue < 0 ? colorDown : na
Set up advanced alerts to stay informed about significant market movements.
Pine Script®
// Alerts alertcondition(ta.crossover(emaValue, 0), "Bullish Trend Shift", "Median Proximity Percentile Crossover Zero Line") alertcondition(ta.crossunder(emaValue, 0), "Bearish Trend Shift", "Median Proximity Percentile Crossunder Zero Line") alertcondition(ta.crossunder(emaValue,emaValue[1]) and emaValue[1] > 90, "Bearish Reversal", "Median Proximity Percentile Bearish Reversal") alertcondition(ta.crossunder(emaValue[1],emaValue) and emaValue[1] < -90, "Bullish Reversal", "Median Proximity Percentile Bullish Reversal")

🚨 Remember, the "Median Proximity Percentile [AlgoAlpha]" is a tool to aid your analysis. It’s essential to combine it with other analysis techniques and market understanding for best results. Happy trading! 📈📉

Release Notes

Replaces "EMA" with "HMA" in the inputs.

Release Notes

Added Alerts for trend swings
Added the option to turn on/off the noise scatterplot

Open-source script

In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.

AlgoAlpha

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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.

Open-source script

AlgoAlpha

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