Phase Change Index:
Based on the M.H. Pee's TASC article "Phase Change Index".
Prices at any time can be up, down, or unchanged. A period where
market prices remain relatively unchanged is referred to as a
consolidation. A period that witnesses relatively higher prices is
referred to as an uptrend, while a period of relatively lower prices is
called a downtrend.
The Phase Change Index (PCI) is an indicator designed specifically to detect changes in market phases.
This indicator is made as he describes it with one deviation: if we
follow his formula to the letter then the "trend" is inverted to the
actual market trend. Because of that an option to display inverted (and
more logical) values is added.
Author: Mladen Rakic