This indicator shows how much will the price need to go to fill its Average Daily Range based on the last 5 days (before today).
5-day ADR is used in concepts by ICT, Poltoratskiy and number of others. Generally speaking, we would like to enter when there is a lot of room for price movement.
Outer lines are a full expansion. If the price moves only upside from the opening bell, it will reach as far. Inner lines are a remaining expansion required to hit ADR. If the price initially moves in one direction and then reverses, this drip is substracted. This is more important metric!
GREAT SCRIPT. Can you add and option in settings where we can change timeframe etc?
OrcChieftain
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@GarethSA, If there was such option, it would no longer be 'Daily Range Expansion' and I am not familiar with trading models using a different TF. It could be a separate indicator but I am not convinced it would be useful.
Can you add and option in settings where we can change timeframe etc?