Similar to the Trading Equilibrium Gauge, understanding how far the current price deviates from its fair value across different time frames is crucial. This gauge displays the difference between the current price and equilibrium prices calculated over 10 different time frames, ranging from five minutes to one day.
Key Features:
Bar Length and Standard Deviations: The gauge measures price differences in terms of standard deviations (+1 STD to +4 STD and -1 STD to -4 STD) from various equilibrium levels. This provides traders with a comprehensive view of price behavior relative to recent equilibrium levels, aiding in forecasting future price ranges.
Example: If the price is 3 STD higher than the 60-minute equilibrium level, it suggests a potential retracement towards that equilibrium level, timed according to the observed time compression.