Kairi indicator calculates deviation of the current price from its simple average as a percent of moving average. It can be used either as a trend indicator or as an overbought/oversold signal.
Kairi Indicator is often used together with other moving averages in a trading system. It can be used to take advantage of an overextended trending market. For instance, in an upwardly trending market when the price rises to more than 10% above the simple moving average, the instrument could be sold. When the price approaches the simple moving average, then the asset could be repurchased.
Methods of use:
1. When the percent is high and positive, it is a signal to sell.
2. When the percent is high and negative, it is a signal to buy.
