PRC-EPMA | QuantEdgeB

Introducing PRC-EPMA by QuantEdgeB

Overview
The PRC-EPMA (Percentile-Endpoint Moving Average) is a sophisticated trading indicator developed for traders looking to capitalize on trend shifts with enhanced filtering mechanisms. It blends Endpoint Moving Averages, Percentile Rank, and Median Absolute Deviation (MAD) Filtering to generate high-probability long and short signals.

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Key Features
🔹1. Endpoint Moving Average (EPMA):
- A regression-based moving average that adapts quickly to price movements.
- Uses a linear regression slope to project future price direction.
- Helps traders identify trend direction more responsively than traditional moving averages.

🔹2. Percentile Rank-Based Dynamic Levels:
- Identifies overbought (75th percentile) and oversold (25th percentile) zones.
- Dynamically adjusts based on historical data, making it robust across different market conditions.

🔹3. Median Absolute Deviation (MAD) Filtering:
- An advanced volatility filter that refines entry and exit points.
- Reduces noise by filtering out weak signals, focusing only on meaningful trend shifts.
- Uses two multipliers (long and short) to fine-tune sensitivity.

🔹4. Signal Generation:
- 📈Long Signal: Triggered when price closes above the upper dynamic threshold.
- 📉Short Signal: Triggered when price closes below the lower dynamic threshold.
- Uses color-coded candles to visually indicate trend shifts.
- Optional signal labels can be enabled for clear entry/exit indications.

🔹5. Customizable Visualization:
- Multiple color themes to match user preferences.
- Ability to overlay signals on price charts.
- Alerts available for long & short crossovers.

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How It Works
1. The script calculates an Endpoint Moving Average based on a user-defined period.
2. It computes the 75th and 25th percentile ranks of the Endpoint Moving Average.
3. Median Absolute Deviation (MAD) Filtering is applied to reduce false breakouts.
4. A buy (long) or sell (short) signal is triggered when price crosses the respective filtered percentile levels.
5. Alerts and labels can be used to notify traders of new signals.

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Behavior across Crypto Majors (Using Default Settings)

BTC


ETH


SOL


Note: Past behaviour is not indicative of future results. Always conduct thorough testing and risk management before making trading decisions.

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Best Use Cases
📌 Trend Confirmation – Use EPMA to confirm if a trend is strengthening or weakening.
📌 Noise Reduction – MAD filtering prevents reacting to minor fluctuations, focusing on stronger trend shifts.
📌 Multi-Timeframe Scalability – Works across multiple timeframes (1H, 4H, Daily, etc.), depending on the trader’s strategy.

⚙️Customizable Inputs⚙️
- Endpoint Moving Average Lookback Length
- Percentile Rank Length
- MAD Filter Sensitivity (Multipliers for Long & Short)
- Signal Labels & Alerts for Long/Short Entries
- Color Theme Selection

Default Setup for PRC-EPMA
Linear Regression Length → 4
Endpoint Lookback → 14
Percentile Length → 21
Median Period (Absolute Deviation Filter) → 21
Upper Multiplier (Absolute Deviation Filter) → 1.8
Lower Multiplier (Absolute Deviation Filter) → 0.9

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Final Thoughts

The PRC-EPMA Indicator is a powerful tool for traders seeking high-quality entry and exit signals based on statistical and regression-based methodologies. By combining EPMA, Percentile Rank, and MAD Filtering, it ensures that only strong and validated signals are executed, making it a great addition for trend-followers and mean-reversion traders alike.


🔹 Disclaimer: Past performance is not indicative of future results. No trading strategy can guarantee success in financial markets.
🔹 Strategic Advice: Always backtest, optimize, and align parameters with your trading objectives and risk tolerance before live trading.