CandleRange: Averaging High-to-Open and Low-to-Open Price Deviations

Summary

CandleRange is a chart indicator that displays two histograms to summarize price movement around each candle's open. The upper histogram represents an averaged difference between the high and open, while the lower histogram represents an averaged difference between the low and open. Their magnitudes are expressed in points, and color brightness distinguishes movement in the indicated direction from its opposite.

The description explains the plotted quantities and color interpretation but gives no trading rules, parameter settings, empirical results, or performance evidence. It refers to an external smoothing library for its calculations, so reproducing the indicator depends on that implementation detail. The displayed high and low deviations can help inspect average intrabar excursions relative to opens, but the text does not explain how to use them to forecast returns or manage risk.

Key ideas

• The indicator plots separate averaged high-to-open and low-to-open deviations.
• The two histogram series express price differences in points.
• Color intensity indicates whether the corresponding high or low movement follows the highlighted direction.
• The description provides no tested trading strategy or evidence of predictive value.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.