Price Excess with Adjustable Recovery

Indicator: Price Excess with Adjustable Recovery

This indicator detects excessive price movements and displays a potential recovery level. It is particularly useful for identifying trading opportunities after significant market movements.

>> Key Features:

1. Detection of upward and downward price excesses
2. Display of an adjustable recovery level
3. Customizable parameters to adapt to different instruments and timeframes

>> Adjustable Parameters:

- Period: Number of candles for calculating the average and standard deviation (default: 14)
- Excess Threshold: Number of standard deviations to consider a movement as excessive (default: 1.5)
- Recovery Percentage: Recovery level as a percentage (default: 50%)

>> Usage:

1. Red triangles indicate a downward excess
2. Green triangles signal an upward excess
3. The blue line represents the potential recovery level

>> Possible Strategies:

- Counter-trend: Consider buying during downward excesses and selling during upward excesses
- Trend-following: Use the recovery level as a potential profit target

>> Usage Tips:

- Combine this indicator with other technical analysis tools to confirm signals
- Adjust the parameters according to the asset's volatility and your trading horizon
- Use appropriate risk management, as excessive movements can sometimes continue

Feel free to experiment with the parameters to find the configuration that best suits your trading style. Happy trading!

By DL INVEST