Glitch Index
The Glitch Index is an interesting one, expecially now that it's upgraded with all "Averages", it can now take advantage of the ADXVMA (thanks Mrtools)
As explained by Mladen, and outlined in the February 2004, Active Trader magazine (attached below), it was inspired by the more successful stock systems that have appeared in the Trading System Lab which utilize a similar timing method, aiming to capitalize on small extreme price fluctuations.
The "system" identifies when the price strays significantly from its usual range by analyzing how much it moves above and below a "detrended" Simple Moving Average (SMA). The indicator created from this analysis is known as the "Glitch Index," which shows the percentage change in price relative to the detrended SMA. The idea is that the price will eventually return to its average, allowing us to make a profit from these temporary shifts or breakouts.
Calculation
Glitch Index = (Diff/Closing Price) * 100
Please have a read of the PDF attached, in particular Page 28.
