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Weekly SMA200 Distance – Percentile Zones

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The Weekly SMA200 Distance – Percentile Zones indicator measures the percentage distance of price relative to the 200-week Simple Moving Average (SMA200) and classifies it into historical percentile zones.

This tool helps identify the context of an asset in relation to its long-term trend:

Cheap Zone (< P25): price at historically low levels relative to the SMA200.

Value Zone (P25–P50): neutral range, where price trades around its long-term average.

Acceptable Zone (P50–P65): moderately high levels, still reasonable within an uptrend.

Not Recommended Zone (P65–P76): overextended territory with rising correction risk.

Very Expensive Zone (≥ P76): extreme levels, historically linked to overvaluation and potential market tops.

Percentile calculations update dynamically with each new weekly candle, providing a robust and objective statistical perspective for investment and trading decisions.

✅ In summary

This indicator works as a quantitative valuation map: showing whether the asset is cheap, fairly valued, acceptable, risky, or very expensive relative to its historical distance from the weekly SMA200.

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