Defining Daily High and Low Zones as Range-Based Trading Filters

Summary

This indicator defines zones near the current day’s high and low as percentages of the daily price range. Users can adjust the percentages and choose to display the zones as filled areas, paired histograms, lines, arrows, or hidden values. Line and arrow modes can show internal zone boundaries, which the document illustrates with example levels measured from the daily extremes.

The zones are presented as possible support areas or as a filter to avoid opening trades close to the day’s maximum or minimum. The indicator can also supply values to another trading system without drawing on the chart. It uses a daily range indicator, reports values on closed bars, and is intended for chart timeframes up to H2. The examples explain display and potential use, but the document gives no backtest or evidence that the zones predict support, resistance, or profitable entries. They should therefore be treated as configurable reference levels, not validated signals.

Key ideas

• The indicator places configurable zones a percentage of the daily range inward from the day’s high and low.
• Users can display the zones as fills, histograms, lines, arrows, or hidden values.
• Internal boundaries can be shown as reference levels within the outer zones.
• The zones may serve as support references or as a filter against entries near daily extremes.
• The indicator uses closed-bar values and is intended for timeframes up to H2; no performance evidence is provided.

Tags

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