is it possible to build an indicator with this simple formula?
trying to explain with an example with a moving average - period 12:
A= price - simple moving average of 12 period;
B= (A - min (A1:A12))*100;
C= (A - max(A1:A12))*100;
B is the output line of oversold and C is the output line of overbought; then we need two moving averages of B and two moving averages of C.
Hope I'm clear.
I poste an image of the output of the indicator: it draws two lines, oversold (yellow) and overbought (light blu).
Usually the buy signal is when oversold line has touched 0 line and then overbought crosses its moving average and also price crosses its moving average. Viceversa for the sell signal.
I think the formula should be the base for some new indicators.
Thanks
Lucmat
