The indicator forecasts high and low price values of a financial asset 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.
Anticipated low price for tomorrow: Min = X - High[1].
Anticipated high price for tomorrow: Max = Low[1] - X.
The indicator has been written based on the book "Forex from the first person. For beginners and professionals" (А. Vedikhin, G. Petrov, B. Shylov).
