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 ะกlose[0] < Open [0], then ะฅ = (High[1] + Low[1] + Close[1] + Low[1] ) / 2;
if ะกlose[0] > Open [0], then ะฅ = (High[1] + Low[1] + Close[1] + High[1]) / 2;
if ะกlose[0] = Open [0], then ะฅ = (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” (ะ. Vedikhin, G. Petrov, B. Shylov).
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