Penrose Diagram for Visualizing Daily or Weekly Price Ranges

Summary

This indicator builds a Penrose-style chart around the daily or weekly opening price. It tracks the current period’s high and low, then draws a geometric range from the open to the observed extremes. Users can choose daily or weekly resolution, display a three-dimensional version, and extend the diagram with additional quadrants.

The overlay also calculates rolling average and maximum distances above and below the period open. It distinguishes average excursion measures that include periods without a breakout from averages that use only periods with an excursion. These levels provide historical context for the current range and are rounded to the instrument’s tick size. The script describes the geometry as approximate: unequal high and low samples can cause extension triangles to intersect, so the drawing is a visualization rather than a validated trading signal. It provides no performance evidence or entry and exit rules.

Key ideas

• The diagram uses the daily or weekly open as its central price reference.
• Rolling averages and maxima of high and low excursions define its geometric levels.
• Separate averages include or exclude periods in which price did not move beyond the open.
• Unequal excursion data can make the drawn triangles intersect, limiting geometric precision.
• The indicator visualizes price ranges but does not specify a trading strategy.

Tags

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