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Mediana

The median indicator is a type of technical analysis tool commonly used in forex trading. It is based on calculating the median price of a currency pair over a specific period of time. The median price is the middle value between the high and low prices.

Compared to the widely used moving average (MA) indicator, the median indicator offers a unique perspective on the market. Here are some advantages of using the median indicator:

  • Robustness to outliers: The median is less affected by extreme price movements or outliers compared to the MA. Since it focuses on the middle value, it provides a more stable representation of the price range.

  • Smoother price representation: The median indicator can smooth out price fluctuations, reducing the impact of short-term market noise. This can help traders identify the underlying trend more easily.

  • Reflects price distribution: By using the median, traders gain insight into the distribution of prices within a given period. It provides information about the concentration of prices around the middle value, which can be valuable for understanding market sentiment.

  • Supports range-based strategies: The median indicator is particularly useful for range-bound markets, where prices fluctuate between support and resistance levels. It helps traders identify the central point of the range, which can be used as a reference for potential buy and sell levels.

  • Complementary to other indicators: The median indicator can be used in conjunction with other technical analysis tools to confirm signals or filter out false signals. For example, combining the median indicator with a moving average can provide a comprehensive view of the market by incorporating both the central tendency and the overall trend.



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vineHI64
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vineHI64 2021.10.25 15:15 
 

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colt45
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epicamj
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epicamj 2020.04.13 23:50 
 

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Version 1.3 2023.05.31
Added limit of bars to calculations
Added possibility to turn off second line
Version 1.2 2021.07.16
Added alert and arrows when crossing the lines (only if the fast median rises or falls)
Version 1.1 2020.10.06
Added second mediana line