Need to create an indicator or find one already exits. Was hoping someone knows of such an indicator and would share its name with me. Essential I want a zero line, with a plot on either side showing the ratio between price and EMA. i,e, 10% rise, or 15 % decline etc. I have to think someone has done this already buy have not found it yet. I would greatly appreciate any help
This is more or less what Bollinger Band combinations show, surely? Except that (perhaps more helpfully than what you've mentioned above?) they take current volatility into account as well, in a sense, by displaying the difference directly on the price chart in terms of "standard deviations", rather than simply "percentages", which don't in themselves signify so much?
This is a distant variant of CCI: http://stockcharts.com/school/doku....hnical_indicators:commodity_channel_index_cci Using EMA may improve smoothing of the average but will have some dependency on initial conditions, starting point and number of bars / period. Dividing by STDDEV in CCI normalizes price action somewhat, otherwise you get absolute differences. What you may really want is create your own custom indicator, ie. in Excel, Ninjatrader or other simple tool, and then experiment for yourself. Best advice for anyone chasing this rabbit hole is that it's just mathematical formulas, not magic or stand-alone profitability. If trading has an ABC, this may be one of the As and Bs. What you actually need in the end is writing your BOOK of trading rules.
Basically , I am trying to see the levels at which people are willing to step in and take a profit or take advantage of a drop. So I was thing of percentage increase and decrease. An I reasoned that the more recent traders are more prone to price movement compared to long past traders, so was looking at the ema. I figured that some distinct pull back levels would emerge. Simple concept really Bollinger bands and many other indicators seem much more complicated.
Do not remember exactly, but IMO it is just a simple oscillator: 100*((price-ema(price,period))/ema(price,period))
They may "seem" that way, but I don't think they really are. It's just that they take current/changing volatility into account, whereas what you're asking about doesn't, and is therefore surely of rather limited value, by comparison?
Should not matter which platform. The question was "is the an already established indicator that does this" from the looks of it there is no such indicator
If you plot out even the roughest idea of your concept, you'll see why you can't find it as having been done (or "popularized") by anyone else. It will show you nothing useful. (Don't feel bad. It happens. [I speak with considerable experience.] Give it another try. You may "re-invent" someone else's. You may start something new.)