Overload List
| Overload | Description |
|---|---|
| Kairi(String,Series,ElementValue,Series) | Calculates the Kairi Indicator measure as a percentage of the price, the divergence between the a moving average (generally the simple moving average) of the price and the price itself for each period for which there is sufficient historical values. |
| Kairi(Series,ElementValue,Series) | Calculates the Kairi Indicator measure as a percentage of the price, the divergence between the a moving average (generally the simple moving average) of the price and the price itself for each period for which there is sufficient historical values. |
| Kairi(Series,ElementValue,SeriesCollection) | Calculates the Kairi Indicator measure as a percentage of the price, the divergence between the a moving average (generally the simple moving average) of the price and the price itself for each period for which there is sufficient historical values. |
Remarks
Remark: The Kairi Indicator is often used with conjunction with other moving averages within trading systems.
Evaluation
The formulae for the Kairi Indicator is as follows:
Kairi Indicator = (MA - price) / price
where MA is the moving average being considered and price is the present price
of the underlying asset.
Application
The Kairi Indicator can be used in order to take advantage of an over extended trending market. For example, in an upwardly trending market when the price gets say more than 10% above the simple moving average, the asset could be sold and repurchased when the next hits the simple moving average again.
The Kairi Indicator could also be used in order to detect market tops and bottom. The idea being that market tops and bottoms often occur when the price is at an extreme value in relation to its moving average. That is, the Kairi Indicator should take an extreme value at market tops and bottoms.