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Indicator for distance above a moving average?
Right now (12/04/2017) there are several major indices that are very far above their 200-day moving averages. Historically, when this happens a correction takes place. I cannot find anything, but are there any tools I can use to identify on a chart the times through history that the $SPX was a great distance above its 200-day MA?
I am thinking of something similar to ROC, that I can map on a chart to show the number of times that an index moved more than 10% in 10 day days, for example. Perhaps a combination of existing indicators?
Thank you in advance for giving this some thought.
PPO(1, 200, 1)
the first 1 is a one day ema of closes - that's not exactly the close of each day, but close.
200 is a two hundred day ema of closes; not identical with the 200 sma, but, since this is about identifying a wide area of overboughtness, and not a price signal, it may be OK.
The second 1 is the ema of the difference between the 1 ema and the 200 ema. Normally, this number would be 9.
The scale on the right is in per cents, so you can just add a horizontal line to the indicator at 10 to see th periods where the 1 ema exceeded the 200 ema by more than 10 %.