From Adam H Grimes: "Introducing a New Tool: The MAC Spike"
Mean Absolute Change Spikes (“MAC Spikes”).
Here are the steps to calculate it:
-Convert each day’s closing price to a change (difference) by subtracting it from the previous day’s closing price.
-Take the absolute value of that change.
-Average the past 20 days absolute values to create the baseline.
-Divide today’s change by yesterday’s baseline. (Still offsetting by one day.)
MAC Spikes- Indicator:
-Indicator Setup: The script defines an indicator with the name "MAC Spikes", not overlaying the main chart, and allows up to 99 lines to be plotted.
-User Inputs: It provides several user-configurable inputs, such as:
Length for standard deviation calculation (len).
-Type of spike to monitor (spikeType), with options for close, range, or open spikes.
-Option to filter spikes based on a threshold (filtered).
-The threshold value for spike significance (spike_thresh).
-Whether to display the spike histogram (disp_Spike).
-Line width for plotting (lw).