Gaps and ranges
Daily Range Projection
Projects where the day's high and low would land at average range, and shows how much of that range is already spent.
Every symbol has a range it typically covers in a session. Knowing that number allows a useful question at any hour of the day: if today turns out to be average, where does it finish? The projection extends the average daily range from the current extreme, or from the open, and marks the resulting high and low estimates.
The spend figure matters more than the projection itself. A symbol that has already covered its average range by midday offers a very different proposition to a breakout trader than the same symbol at the open. Sessions that exceed the average are flagged rather than quietly ignored, since those are the days the projection no longer describes.
The averaging window, the range basis and the projection mode are all adjustable, which matters on a symbol whose volatility has shifted in recent weeks.
How to read it
- Early in the session the projection reads as a target. Late in the session it reads as a warning.
- Range already exceeded is the condition where reversion trades improve and breakout trades get expensive.
- Shorten the averaging window when volatility has changed recently, so the projection reflects the current regime.
Questions
Is this a forecast?
No. It projects what an average session would look like, which gives you something to compare the current one against.
What happens on an outlier day?
Once the range exceeds the average the projection is withdrawn, which is itself the signal that today is not an average day.
Related
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Marks the overnight gap, tracks whether price fills it, and reports the fill rate and...
Overnight Range
The range built between one close and the next open, carried across the session, with...
Initial Balance
The opening hour range with extension targets, and how often the session leaves it and...
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All 15 GapAlgo indicators are public on TradingView. Add them to a chart and they work.
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