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Description

This study calculates and displays the difference between the Input Data 1 Input and Input Data 2 Input for each bar in the chart. By default, each of these Input Data Inputs refers to the same bar. Also by default, the study calculates the difference between the High and Low of a bar, indicating its range.

The study also supports referencing Input Data 2 from a prior bar through the Input Data 2 Offset Input.

Let \(X^{(1)}\) and \(X^{(2)}\) be random variables denoting Input Data 1 and Input Data 2, respectively, and let \(X_t^{(1)}\) and \(X_t^{(2)}\) be their respective values at Index \(t\). Let the Input Offset be denoted as \(k\). Then we denote the Bar Difference at Index \(t\) for the given Inputs as \(BarDiff_t(X_t^{(1)}, X_t^{(2)}, k)\), and we compute it for \(t \geq 0\) as follows.

If the Input Calculate Difference in Price Ticks is set to Yes, then we divide by the Tick Size \(s\). The Tick Size is set through Chart >> Chart Settings >> Main Settings, and it appears as a third argument in the Bar Difference function. We calculate it as follows.