A signal indicator of daily ranges. It is based on indicator Range Contraction.
It displays in a separate window the ratio between today's and yesterday's ranges. It marks with signal pointers the narrow range points (under the specified value).
"If yesterday's range was narrower than the previous day's one, it may be an explosive movement today." (Toby Crabel)
There are three adjustable parameters:
- Threshold - yesterday's range threshold;
- Show Small Range - whether to show narrow range signals or not (Yes/No);
- Calculation period mode - calculation period mode
- Current - calculations on the current bar;
- Previous - calculations on the previous bar.
Calculation:
RC = 100.0 * (High[Period] - Low[Period]) / (High[Period+1] - Low[Period+1])
if RC < Threshold:
Breakout = RC
