This indicator visually shows OHLC moves in terms of percentages compared to an input reference series, e.g. this could be a moving average line, and then plotting how far OHLC values are from that reference at each time unit/bar.
A centre/zero-line is shown to indicate little to no extension when prices are hovering about there. This could a profit taking point, or an entry point, depending on the system at play.
You may also only be interested in Highs and Lows extension, for example, in which case simply hide the other lines from the indicator settings.
It may factor into trading systems considering both mean reversions, or trend breakouts/breakdowns.
A centre/zero-line is shown to indicate little to no extension when prices are hovering about there. This could a profit taking point, or an entry point, depending on the system at play.
You may also only be interested in Highs and Lows extension, for example, in which case simply hide the other lines from the indicator settings.
It may factor into trading systems considering both mean reversions, or trend breakouts/breakdowns.