The indicator forecasts high and low price values of a financial asset for the current trading day considering yesterday's (completed) and today's day candlesticks parameters.
Tomorrow's price range X depends on the current day Close and Open prices ratio.
Three relations are possible among them:
if Сlose[0] < Open [0], then Х = (High[1] + Low[1] + Close[1] + Low[1] ) / 2;
if Сlose[0] > Open [0], then Х = (High[1] + Low[1] + Close[1] + High[1]) / 2;
if Сlose[0] = Open [0], then Х = (High[1] + Low[1] + Close[1] + Close[1]) / 2.
where:
- Open[0], High[0], Low[0], Close[0] - current day prices;
- Open[1], High[1], Low[1], Close[1] - yesterday's prices.
Estimated low price for tomorrow: Min = X - High[1].
Estimated high price for tomorrow: Max = Low[1] - X.
This version of the Daily Range Projections indicator can be generated for any chart bar and allows to see a complete picture of the market behaviour relative to the indicator levels at each bar. Perhaps, the most appropriate application sphere for this indicator is an offline strategy analysis.
The indicator has been written based on the book "Forex from the first person. For beginners and professionals" (А. Vedikhin, G. Petrov, B. Shylov).
