Support Board
Date/Time: Wed, 27 Nov 2024 10:25:32 +0000
[User Discussion] - Range Calculation for Bars
View Count: 1333
| [2022-03-10 06:06:43] |
| User501854 - Posts: 2 |
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Is there an option or a study in sierra which provides the active range of a bar which can be plotted on a region beneath the chart as a bar For example:- IF i have a 30 min chart, the study would simply keep calculating the range of the current bar ( High - Low) and show it below in the region in some of a display bar with the value constantly reflecting on the top The rationale is i want to be able to constantly understand the ranges of certain time frames to gauge market volatility and participation. |
| [2022-03-10 13:02:35] |
| Sawtooth - Posts: 4120 |
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Use the Average Daily Range study, and set the Length to 1. Despite its name, this study returns the average bar range. |
| [2023-09-10 03:14:08] |
| n8trading - Posts: 36 |
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I want to take this to the next level. Instead of only calculating the average price range per bar, is it possible to calculate the average price range per bar cumulatively from X time. For example on a 5 minute chart, if the bar at 9:30 is 50 points, the APR would be 50. If the 9:35am bar is 20 points, the APR will now be 35. If the next bar is 10, the APR will now be 26.6, etc. The idea here is to be able to keep an eye on how volatile the market is and how much price movement there is to potentially be able to capture/profit on. If APR drops too low, you may decide it's not worth trading anymore. |
| [2023-09-10 03:48:32] |
| Sawtooth - Posts: 4120 |
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A cumulative average of the bar's range, as you describe, will result in a continually diminishing value as each new bar's range is included in the average of the total number of bars since 9:30. Are you sure this is what you want? |
| [2023-09-10 04:23:11] |
| n8trading - Posts: 36 |
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Unless I am missing something (which is highly possible), I don't see why it would be a continually diminishing value. In my example it would be, but say the market at 10:30 moved 100 points in 5 minutes, that would increase the value. Maybe not above the highest value of the day, but I'm just looking for an indicator to show whether the market is still moving in wide ranges or not.
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| [2023-09-10 04:39:01] |
| Sawtooth - Posts: 4120 |
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Because you are including an additional bar in the average with each new bar, only a very significant bar's range might push the cumulative average slightly higher, and only for that one bar. This becomes all the more true, as the total number of bars reaches a larger number. I actually built this on a spreadsheet, and this it what I observed. I think you might want to only average the current bar's range with the previous bar's range, or maybe the previous n bars. Or compare the current bar's range to an average of the previous n bars. |
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