The big question that every trader wants to know is, "How much will the market rise/fall in the future?"

We will never know that answer for certain, but... we can statistically verify the average future return. Here's an example that makes the idea more concrete:


When the price is 0.04% below the 24 period simple moving average on 6E 1 hour charts, the average future return is 0.004%.

A simple indicator reading gives direction and magnitude of the average future price movements.
The easiest way to illustrate this concept is by measuring the percentage distance of the price away from its moving average.


q.onestepremoved.com/indicator/SMA/

Changes in the SMA Price Distance are -95.96% correlated with future price movements. Seeing is believing, which is why I created a free tool to let you analyze how the SMA Price Distance indicator predicted future prices using historical data.

When you run your tests
, here are the settings that you should use to test.




Click here to do your own free testing of SMA Price Percentage Distance.