MA % Deviation Channel

MA % Deviation Channel — an indicator for measuring price deviation from the moving average

MA % Deviation Channel (MA%DC) is a visual analysis tool that shows how far the current price deviates from a selected moving average, expressed in percentages. The indicator builds dynamic channels based on historical percentage deviations, helping traders identify statistical extremes and use them as potential reversal or continuation zones.

How the indicator works

MA%DC calculates the percentage deviation of High and Low from the chosen MA and stores these values in arrays. Based on the average deviation values, the script plots four key levels:

• Avg. High Dev. — average deviation of highs from the MA
  
• Avg. Low Dev. — average deviation of lows from the MA
  
• Avg. Extreme High Dev. — extreme (above-average) deviations of highs
  
• Avg. Extreme Low Dev. — extreme (below-average) deviations of lows
  

The width of the channel automatically adapts to the selected MA period — the longer the period, the deeper the historical analysis.

Purpose and use cases

MA % Deviation Channel helps:

• Evaluate volatility relative to the moving average
  
• Identify overbought and oversold zones based on real price behavior
  
• Filter breakouts and false impulses
  
• Build trend-following and counter-trend strategies using statistical deviations
  

Advantages

• Based on percentage deviation rather than fixed distances
  
• Adaptive to changing market conditions
  
• Supports 5 popular types of moving averages
  

Settings

• MA Source — data source for the moving average
  
• MA Type — moving average type (SMA, EMA, WMA, VWMA, RMA)
  
• MA Length — smoothing period
  

Visual elements

• The moving average line
  
• Average deviation channels
  
• Extreme deviation channels
  
• Color fills between levels for improved readability