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 is calculated using the following formula:

BIAS1 = (Close - MA(Close, timeperiod1)) / MA(Close, timeperiod1) * 100
BIAS2 = (Close - MA(Close, timeperiod2)) / MA(Close, timeperiod2) * 100
BIAS3 = (Close - MA(Close, timeperiod3)) / MA(Close, timeperiod3) * 100

Where MA is the moving average.

Usage 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