Average
The equal-weight average of the last N values, this bar included, drawn over the candles as a baseline.
Avg averages the last N values of its input with equal weight, the current bar included. With the default input it is the average close of the last 60 bars. It computes the same average as the simple moving average, SMA; the two differ only in their default window, 60 bars here and 20 for SMA.
How to read it
- The line sits on the price scale, drawn over the candles.
- Price above the line is trading above its recent average; below means under it.
- A steep slope means the average is moving fast; a flat line means price has hovered around it.
What it outputs
- Average
- The average close of the last N bars, this bar included, on the same scale as the candles.
Settings
- Window
- How many bars the average covers, equal weight each. Raising it smooths the line and lags price more; lowering it tracks the candles closely and bends at each small move.
Pitfalls
- On a steady trend the average sits about (N minus 1) divided by 2 bars behind price, so a 60-bar line confirms moves late.