GoTiT|Profiteer v1.1

Description

This indicator measures the distance (in percent) between the price and its 20 EMA (in green) and 200 EMA (in red).

Basic Idea

Price tends to move away from its moving averages, and eventually snaps back. Knowing how far away the price has moved from a moving average might be useful.

Details

The green line measures of the distance (in percent) between the price and its 20 EMA. Positive values indicate how far the price is above the 20 EMA. Negative values indicate how far the price is below the 20 EMA.
The red line measures of the distance (in percent) between the price and its 200 EMA. Positive values indicate how far the price is above the 200 EMA. Negative values indicate how far the price is below the 200 EMA.

The dotted grey line measures (in percent) the distance between the 20 EMA and the 200 EMA. Positive values indicate how far the 20 EMA is above the 200 EMA. Negative values indicate how far the 20 EMA is below the 200 EMA.

The dotted horizontal lines (red, green, and grey) track the current value. These can be disabled in the indicator settings.

Usage

Look for extreme values on the weekly, 3-day, and daily charts. For example, compare the 1974 & 2002 lows on the weekly chart of the S&P. In both instances, the green line is in the -20% range, and the red line in -30% range. In both cases the bottom was very close.
Compare previous tops or bottoms to get a baseline (taking the trend into account). For example, on the weekly S&P chart, the +31% or above range for the red line tends to be a warning of an impending downward pressure.

Other

In my opinion, the default settings of this indicator are better suited for investing rather than day trading. Try other values for EMA 1 & EMA2 in the indicator settings. Note, EMA2 should be greater than EMA1.