Moving Median Pro

The most-used technical indicator must be the moving average. However, the trading world seems to have forgotten its brother which is mathematically a better measure of central tendency: moving median.

The concept of "moving" is the same. So, what is "median"? It is the one that stands exactly in the middle of a sorted series (if a series is unsorted, we have to sort it first). If a series has an even number of elements, its median is the average of the 2 middles. For example, the median of the series "3, 8, 12, 25, 31" is 12; the median of the series "3, 8, 12, 25" is (8 + 12)/2 = 10.

Why does a median measure central tendency better than an average? Because an average is much more sensitive to outliers, which are extreme values often observed at spike bars. Being more immune to outliers, a moving median tends to be a smoother and more stable plot.

ninZa.co is one of the only vendors that provides an accurate and professional moving median indicator. No trading platforms offer a built-in moving median indicator, except Interactive Brokers.

• Plot moving median with configurable period
• Allow smoothing Input with
  11 popular moving averages
• Allow applying a plot change filter
• Paint background to show 2 phases: uptrend, downtrend
• Colorize bars based on 2 phases: uptrend, downtrend
• Colorize plot based on 2 phases: uptrend, downtrend
• Print markers on trend shift
• Trigger alerts on trend shift
• Be NinjaScript ready for advanced usage, only restricted by your imagination
• Expose dedicated NinjaScript signals

• Signal_Trend: 1 = uptrend, -1 = downtrend