Recently we released an indicator called “Outliers” which was showing the price outliers in a Bollinger Bands style, it’s based on percentiles and during working on it we came up with another idea for using percentiles as a tool to analyze the market.
Market Status uses percentiles to find the market condition, if the current price was above 80% of x previous bars then the market condition is considered uptrend and if it was below 20% there is a downtrend, the range between 20% to 80% is considered neutral zone which market tends to consolidate.
When a bar closes for the first time above 80% or below 20% and breaks the neutral zone the indicator shows a dot below or above that bar based on signal type, this bar is a breakout setup because it broke the consolidation zone and it might be the start of a new trend.
We have checked the historical data and found that the breakout bars are very accurate and it spots almost all trend start points.
Beside the breakout bar signal which is a very early signal and lots of traders don’t like to jump in that early this indicator has another signal which happens after breakout signal, when a trend is already started and price pullbacks to it’s mean, that’s the time when you can jump in and ride the trend to the end or just a swing of it.
- Dot style Buy / Sell signals
- Popup, sound and email alert
- Fully customizable based on user needs