OPEN-SOURCE SCRIPT
MA % Deviation Channel
MA % Deviation Channel — an indicator for measuring price deviation from the moving average
MA % Deviation Channel (MA%DC) is a visual analysis tool that shows how far the current price deviates from a selected moving average, expressed in percentages. The indicator builds dynamic channels based on historical percentage deviations, helping traders identify statistical extremes and use them as potential reversal or continuation zones.
How the indicator works
MA%DC calculates the percentage deviation of High and Low from the chosen MA and stores these values in arrays. Based on the average deviation values, the script plots four key levels:
The width of the channel automatically adapts to the selected MA period — the longer the period, the deeper the historical analysis.
Purpose and use cases
MA % Deviation Channel helps:
Advantages
Settings
Visual elements
MA % Deviation Channel (MA%DC) is a visual analysis tool that shows how far the current price deviates from a selected moving average, expressed in percentages. The indicator builds dynamic channels based on historical percentage deviations, helping traders identify statistical extremes and use them as potential reversal or continuation zones.
How the indicator works
MA%DC calculates the percentage deviation of High and Low from the chosen MA and stores these values in arrays. Based on the average deviation values, the script plots four key levels:
- Avg. High Dev. — average deviation of highs from the MA
- Avg. Low Dev. — average deviation of lows from the MA
- Avg. Extreme High Dev. — extreme (above-average) deviations of highs
- Avg. Extreme Low Dev. — extreme (below-average) deviations of lows
The width of the channel automatically adapts to the selected MA period — the longer the period, the deeper the historical analysis.
Purpose and use cases
MA % Deviation Channel helps:
- Evaluate volatility relative to the moving average
- Identify overbought and oversold zones based on real price behavior
- Filter breakouts and false impulses
- Build trend-following and counter-trend strategies using statistical deviations
Advantages
- Based on percentage deviation rather than fixed distances
- Adaptive to changing market conditions
- Supports 5 popular types of moving averages
Settings
- MA Source — data source for the moving average
- MA Type — moving average type (SMA, EMA, WMA, VWMA, RMA)
- MA Length — smoothing period
Visual elements
- The moving average line
- Average deviation channels
- Extreme deviation channels
- Color fills between levels for improved readability
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.
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
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.
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.