LegendaryStick

MA Extension

This indicator measures the vertical distance form the current close to the MA of your choice. I find that it does not work best as an oscillator, but it works well for providing early signals for taking profits when trend continuating. For example, if you go short due to a retracement to the MA (of your choice) take profits when a bearish trendline is broken (signalling the start of a bullish correction) that corresponds to the highs of the chart. The logic behind this indicator is that the breakouts of trendlines of an assets difference from an MA will precede corresponding breakouts of trendlines drawn on raw price. Kind of like Momentum, except it takes trend into account. Momentum has the same leading feature when it comes to drawing trendlines , but trendlines will be harder to draw due to the Momentum indicators oscillatory behavior.
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

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Comments

It is originally called as KRI.. 1960s japanese use to use it. Then it disappeared after the coming of RSI. good work.
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Thanks! I like this as am used to following sma50 and percent difference extremes to guess pauses or reversals (peaks and troughs of the difference often show a consolidation or reversal in price).
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Interesting, thanks!
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lol idk why it glitched out and posted 3 at a time
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