BIAS (Bias Index)

Indicator Description

BIAS (Bias Index) is a trend indicator that reflects the overbought and oversold state of the market by calculating the deviation of price from the moving average.

Function Information

• Function Name: BIAS
• Input Parameters: Close
• Parameter Settings: timeperiod1 (default: 6), timeperiod2 (default: 12), timeperiod3 (default: 24)
• Output: bias1, bias2, bias3

Calculation Principle

BIAS reflects the overbought and oversold state of the market by calculating the deviation of price from the moving average. When BIAS is positive, it means the price is above the moving average; when BIAS is negative, it means the price is below the moving average.

Application Scenarios

1. Overbought and oversold judgment
2. Trend strength analysis
3. Divergence signal identification
4. Trading signal generation

Notes

• Parameter settings affect indicator sensitivity
• May fail in one-sided trends
• It is recommended to use in combination with other technical indicators
• Pay attention to changes in market environment