The p-indicator first appeared in my book “Short-term Trading With Price Patterns”. It is an advanced indicator based on price patterns that comes in the form of an oscillator and it is a standard feature of Price Action Lab. More information can be found in this white paper:
http://www.priceactionlab.com/Literature/pIndicator.pdf
I will provide here just a summary of the p-indicator features:
- The p-indicator calculations at any given point depend on the price history of a security
- The p-Indicator value depends on user defined trade exit levels.
- The p-indicator is based on price patterns
- The p-indicator is an oscillator and its value lies in the range 0 to 100%.
It may be seen from the above that this indicator has a few unique features not found in other popular technical analysis indicators.
This is a recent post where the indicator was used:
More examples of how the p-indicator may be used can be found here:
http://www.priceactionlab.com/Literature/spyresults/spyresults.html
I use the p-Indicator with daily bars and I run the calculations after the market close but I am also looking forward to the development of a real-time version for 15 and 30 minute bars.
