FTB-C000241 / Formula component

Price Below Moving Average

Price Below Moving Average is a Boolean classification that is true when the selected price is below its specified moving average.

Also known asbelow-MA flag

Definitions

In plain terms

It provides the opposite directional participation count when equality and missing values are handled separately.

Technical

The rule fixes fields, timestamp alignment, strict versus inclusive comparison, readiness, and missing data.

Scope

It is not always the exact complement of above-MA when prices can equal the average or be missing.

Formula

Below-MA flag = 1 if P < MA, else 0
LaTeX: J_t=\mathbf{1}(P_t<MA_t)
SymbolMeaningUnit
Pselected security pricecurrency per share
MAselected moving averagecurrency per share

Output unit: binary

Examples

  • A Fintech Builder lesson can compute or identify Price Below Moving Average only after declaring its inputs, timing, and edge-case rules.

Common misconceptions

  • It is not always the exact complement of above-MA when prices can equal the average or be missing.

Concept relationships

Where this concept is used

Tutorials planned

These catalogued topics use this concept, but their complete build has not shipped yet.

  • D04-F03-A04 Important

Evidence and governance

  1. Percent Above Moving Average StockCharts ChartSchool · secondary methodology

    Supports: preferred label, short definition, technical definition, formula

    Limits: Threshold interpretation and universe composition are contextual and must not be treated as guaranteed signals.

Reviewed by
fintech-builder-batch-005
Last reviewed
2026-07-27
Next review
2027-07-27
Record status
published
Written by

Fintech engineer building market-data and financial systems, and the author of every article, glossary record, and reference implementation on The Fintech Builder.