Average Absolute Error Normalization — Indicator by alexgrover

Normalization often involve the ratio of a quantity over a variable in order to bring that quantity in a specific scale (fixed/non-fixed). Normalized oscillators are common types of oscillators used in technical analysis.

The proposed indicator is a normalized oscillator in a scale (-1,1) and is based on the average error between the price and a specific moving average divided by the average absolute error. The indicator can be smoother by checking the "smoother" option.

The interpretation is the same as any other type of oscillators, overbought/sold levels are also provided (-0.8,0.8) by default.

Check out the indicators we are making at luxalgo: www.tradingview.com/u/LuxAlgo/

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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