📈PMARP
Price Moving Average Ratio Percentile
Price Moving Average Ratio Percentile
I like this indicator for profit taking. Allows you to get an idea of how mature the movement is and when to start capitalizing on your gains. Also decent for identifying potential entry areas, but probably better with some other confluence (like momentum oscillators).
Personally I think that this indicator is generally better for LTF scalps. On HTF this indicator can stay at extreme levels for a long time so I don't think it's that good at signaling when you should start taking profit . Up to the 2H timeframe I think it does a good job.
I consider two important areas with this indicator where you should start taking profit on a scalp.
Close above 80 in case of longs and close below 20 in case of shorts. If you want to be more conservative and secure better % win but less nominal PnL, probably better 75 and 25 respectively.
Blue vertical lines get printed when read is <1 and red vertical lines get printed when read is > 99, those indicate extremes.
Remember this is an indicator that gives you the idea of where it is conservative to start taking profit. That doesn't mean it's perfect or that you're going to get the most profit possible because it's not. Is about eliminating the emotional decision of when to TP so that in the long term and after many repetitions it will benefit you statistically speaking by compounding and securing all those wins. Is not about extracting max profit from each position. For this reason it is especially useful in LTF scalps since you will have many more iterations to apply this TP strategy overtime.
Using it in confluence with a momentum oscillator indicator that gives you entry triggers is an smart way of using the PMARP.
Tip: No need to wait for candle close >80 or <20. If it trades there intra-candle you can just close at any point during that time. This is useful especially during volatile moves.
