Baseline Analysis

Explore price movements relative to a selected baseline for fluctuation analysis

Overview

Powerful tool to analyze how price moves relative to any baseline (price level, moving average, indicator value, or custom reference). Essential for understanding deviation patterns and mean reversion opportunities.

Features

Baseline Types

• Fixed Price: Set any price level as baseline
• Moving Average: SMA, EMA, WMA as dynamic baseline
• VWAP: Volume-weighted average price
• Previous Close: Daily/weekly/monthly close
• Custom Formula: Any indicator or calculation

Analysis Modes

• Deviation %: How far price is from baseline
• Standard Deviation: Sigma bands from baseline
• ATR Multiple: Deviation in ATR units
• Pip/Point: Absolute distance measurement

Visualization

• Baseline Line: Horizontal or dynamic line
• Deviation Bands: ±1σ, ±2σ, ±3σ zones
• Heat Map: Color intensity by deviation
• Histogram: Deviation over time

Alerts

• Cross Above/Below: Baseline crossing alerts
• Deviation Threshold: Alert at X% deviation
• Return to Baseline: Mean reversion signals
• Extended Move: Prolonged deviation alerts

Usage

// Create baseline analysis
const analysis = kit.baseline.create({
  symbol: 'EURUSD',
  baseline: { type: 'ema', period: 200 },
  deviationMode: 'percentage',
  bands: [1, 2, 3]  // sigma levels
});

// Get current deviation
const deviation = await analysis.getCurrentDeviation();
console.log(`Price is ${deviation.percent}% from 200 EMA`);

// Set up mean reversion alert
kit.alerts.create({
  condition: 'baseline_return',
  symbol: 'EURUSD',
  baseline: 'ema200',
  threshold: 0.5  // within 0.5%
});

API Endpoints

Method	Endpoint	Description
POST	/api/baseline/create	Create baseline analysis
GET	/api/baseline/:id/deviation	Get current deviation
GET	/api/baseline/:id/history	Historical deviation data
POST	/api/baseline/:id/alert	Create deviation alert

Trading Applications

1. Mean Reversion: Enter when price deviates >2σ from VWAP
2. Trend Following: Stay in trade while above baseline
3. Range Trading: Trade bounces off deviation bands
4. Position Sizing: Larger size near baseline, smaller at extremes

Inspired By

TradingView's baseline analysis tool for exploring price movements relative to selected reference points.