Price within X% of SMA

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Hey Pete, hope all is well. I found some code (see below) and tried making it into an MTF lower study that would spike when price is within 5% of a 50 SMA. It seems to only show a fraction of the 50 SMA interactions. I think the “def = status” line is goofed up — like it’s saying that price has to actually be below the SMA?? Maybe there’s a better way of scripting “price within 5%?” Any assistance is greatly appreciated.

-Dixon

declare lower;

input Period = AggregationPeriod.FIFTEEN_MIN;
input percent = 0.05;
input length = 50;

def SMA = Average(close(period = period), length);
def Status = absvalue(close – SMA) is less than or equal to percent;

plot Proximity = if Status then 1 else 0;

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Posted by Dixon Enriquez (Questions: 2, Answers: 4)
Asked on April 13, 2020 7:21 pm
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Here is how I would compute that:

declare lower;
input timeFrame = AggregationPeriod.FIFTEEN_MIN;
input xPercent = 5.0;
input length = 50;
def maOne = Average(close(Period = timeFrame), length);
plot signal = close > maOne * (1 - xPercent * 0.01) and close < maOne * (1 + xPercent * 0.01);

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Posted by Pete Hahn (Questions: 37, Answers: 4153)
Answered on April 13, 2020 8:25 pm
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Yeah, I see what you mean. I thought the below, revised script was going to work (it seemed to work via calculator), but it's not producing any results. Maybe after another cup of coffee... Ideas? declare lower; input Period = AggregationPeriod.FIFTEEN_MIN; input Percent = 0.05; input Length = 50; def SMA = Average(close(Period = Period), Length); def Value = ((close - SMA) / SMA); def Status = Value
(Dixon Enriquez at April 14, 2020 7:01 am)
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I updated my answer to include my solution to the request.
(Pete Hahn at April 14, 2020 8:15 am)
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Awesome Pete, thanks! As a heads-up, I wasn't getting good results with xPercent set to 5.0 (500%??), but it works like a charm at .05. Thank you, Sir.
(Dixon Enriquez at April 14, 2020 8:44 am)
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The input value of 5.0 is indeed 5%, and is converted to the decimal equivalent later on in the code by multiplying it by 0.01 (5.0 * 0.01 = 0.05). You did say you wanted 5%. But if you enter a value of 0.05 you are actually applying 0.05% to the moving average.
(Pete Hahn at April 14, 2020 8:50 am)
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Gotcha. Another impact to my results was the price of the stock/index. 5% of a $100 stock vs. a $2700 index will produce very different results and the /ES was always spiked with a 5% setting. I'll just adjust the % based on the value of stock/index. Thanks for explaining, Pete!
(Dixon Enriquez at April 14, 2020 9:20 am)
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Fixed percentages and other values are always problematic. I suggest you explore the concept of applying the ATR value to your computation so that it can automatically adjust to stocks of various price levels.
(Pete Hahn at April 14, 2020 10:37 am)
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That's a good idea, I'll have to look into that. For now I just knocked the indices down to xPercent .04 - 1.0 and am in the process of figuring out the equities values. Thanks again.
(Dixon Enriquez at April 14, 2020 11:29 am)
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