Median
This script's primary function is to calculate the median price of a stock over a specified period and provide visual cues for potential buy and sell signals, along with coloring the bars on the chart based on their relationship with the median price.
Here's a breakdown of how the script works:
1. **Median Price Calculation:** It first calculates the median price by finding the average of the highest and lowest prices over a defined period (100 bars in this case).
2. **Median Price Color Determination:** Next, it determines the color of the median price line based on the current close price's relationship with the median price. If the close price is above the median, the line color is green; if below, it's red; otherwise, it remains blue.
3. **Plotting Median Price:** The script then plots the median price line on the chart using the determined color. This line provides traders with a visual reference point for assessing price movement relative to the median.
4. **Buy and Sell Signals:** It generates buy signals when the closing price crosses above the median price and sell signals when it crosses below. These signals are represented on the chart by green upward-facing triangles for buy signals and red downward-facing triangles for sell signals.
5. **Bar Coloration:** Lastly, the script colors the bars on the chart based on their relationship with the median price. Bars above the median are colored blue, those below are orange, and bars touching the median remain white. This coloring helps traders quickly assess whether the price is above or below the median.
Overall, this script provides traders with valuable insights into the median price dynamics and potential trading opportunities, enhancing their decision-making process when analyzing charts and executing trades.
Here's a breakdown of how the script works:
1. **Median Price Calculation:** It first calculates the median price by finding the average of the highest and lowest prices over a defined period (100 bars in this case).
2. **Median Price Color Determination:** Next, it determines the color of the median price line based on the current close price's relationship with the median price. If the close price is above the median, the line color is green; if below, it's red; otherwise, it remains blue.
3. **Plotting Median Price:** The script then plots the median price line on the chart using the determined color. This line provides traders with a visual reference point for assessing price movement relative to the median.
4. **Buy and Sell Signals:** It generates buy signals when the closing price crosses above the median price and sell signals when it crosses below. These signals are represented on the chart by green upward-facing triangles for buy signals and red downward-facing triangles for sell signals.
5. **Bar Coloration:** Lastly, the script colors the bars on the chart based on their relationship with the median price. Bars above the median are colored blue, those below are orange, and bars touching the median remain white. This coloring helps traders quickly assess whether the price is above or below the median.
Overall, this script provides traders with valuable insights into the median price dynamics and potential trading opportunities, enhancing their decision-making process when analyzing charts and executing trades.
Release Notes:
Added lookback length
Release Notes:
Fixed lookback length