Distance from the 200-day average
How far the price is above or below its 200-day average, in percent.
What it shows
The 200-day average is a common long-term reference. The distance is the percent gap: (close ÷ 200-day average − 1) × 100. Positive means price is above the average and negative means below.
The chart shows the gap over time in a panel under the price. It shows how stretched price is relative to its own history.
How we find it
The same code that draws it on your chart follows these steps, with the same result every time.
- Compute the 200-day SMA.
- For each bar, compute (close ÷ SMA − 1) × 100.
- Plot the result under the price.
- Mark the highest and lowest gap in the period.
Starting values: Average 200-day SMA. These are proposed and will be tuned on real price data before launch.
How to read it
- The panel shows the percent gap. The zero line is where price equals the average.
- A larger gap means price is farther from its long-term average.
- Past gaps show how large the gap has been before.
Status labels you may see
| Label | What it means |
|---|---|
| Above the average | Positive gap. |
| Below the average | Negative gap. |
| Near the average | Within 2% either way. |
What cancels it
Nothing cancels it.
What traders check next
- How large the gap was at past turns.
- Whether the 200-day is rising or falling.
- How long price spent above or below it.
Limits
- Different stocks have different normal gaps.
- Needs 200 bars of history.
- A large gap does not mean it will close.
Try it in forecastviz
- Open any ticker and choose Moving averages → Distance from the 200-day average in the left menu.
- Switch between 1Y, 3Y, 5Y to see how the picture changes.
- Compare with Golden cross and Death cross on the same chart.
Questions
Why 200 days?
It is a widely watched long-term average, about 10 months of trading.
Is a large gap a problem?
It is a fact about distance. We make no claim about what follows.
Related trends
Further reading
- Murphy, Technical Analysis of the Financial Markets
- Kaufman, Trading Systems and Methods
- Achelis, Technical Analysis from A to Z
Educational only. Not financial advice, and not a price forecast. Charts are drawn by code from past price data, which may be delayed.