Day-of-Week Average Range Bands for Daily Price Charts
Summary
The indicator estimates a separate average high–low range for each weekday from the available daily price history. It displays that weekday’s average range around a selected closing-price reference as upper and lower bands, background candles, or both. A multiplier changes the displayed width, while a configurable offset selects which day’s reference price to center on. A start date can limit the observations used; setting it to zero includes all available history.
The document describes the calculation and provides implementation code, but gives no trading rules, performance results, or validation of the bands as predictive levels. It specifies daily charts and explains that each average uses recorded history up to the date being plotted. The indicator summarizes historical ranges, which may not represent future volatility or account for changes in market conditions. The code also covers six weekday values, so its application depends on the source market’s trading calendar and data.
Key ideas
- The indicator calculates a historical average high–low range separately for each weekday.
- It plots the range around a configurable closing-price reference as bands or background candles.
- A multiplier, offset, and start date control band width, center, and calculation history.
- The author specifies daily charts; the document supplies no evidence that the bands predict future moves.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.