Description

• Skewness is a measure of the asymmetry of returns in the future which may be positive or negative

Interpretation

• If input line values are skewed to the right of the data average, it indicates positive skewness
• If input line values are skewed to the left of the data average, it indicates negative skewness
• If the input line follows a balanced normal distribution, then the skewness is zero

For eg. A slope rises when it is above 20-day SMA and falls when it is below it

Default Parameters Used/Inputs

• Close Line
• Bars

Returns/Output

Skewness of the stock at specified period

Formula

S(X,R)=3*[SMA(I[X],R)-Median(I[X],R)]/StdDev(I[X],R)
S(X,R) indicates skewness over a range