MidPoint over Period (MIDPOINT)

MIDPOINT calculates the middle value between the highest and lowest points over a specified lookback period: (MAX(price, n) + MIN(price, n)) / 2. With default 14-period, it finds the midpoint of the price range over recent bars. Unlike moving averages that average all values, MIDPOINT only uses extreme values to define the center of the trading range. This creates a mean-reversion level that represents the equilibrium price for the lookback window. MIDPOINT moves when new highs or lows are established or when extreme values drop out of the lookback period.

Cryptocurrency traders use MIDPOINT as a dynamic support/resistance level and mean-reversion target. Price above MIDPOINT suggests bullish bias; below suggests bearish bias. Mean-reversion strategies sell when price reaches upper extremes and buy at lower extremes, expecting return to MIDPOINT. It works well in ranging markets for identifying overbought/oversold conditions relative to recent range. MIDPOINT combines effectively with Bollinger Bands (as the center line), Donchian Channels, or Keltner Channels for range-bound trading. Range traders and market makers favor MIDPOINT for identifying fair value zones.