Projecting Historical Price Paths by RSI, Stochastic, Williams %R, or ADX

Summary

This ProRealTime indicator estimates average forward price movement conditional on the current reading of RSI, Stochastic, Williams %R, or ADX. It divides indicator readings into 20 five-point ranges, then separates observations according to whether the indicator was rising or falling. Across available history, it averages subsequent price changes for each range and plots the resulting paths over a user-selected number of bars.

Settings control the indicator and lookback period, projection length, whether to show rising, falling, or combined paths, and whether to display all ranges or just the current reading’s range. Optional labels show the bucket and its sample count; an offset can move the projection’s starting candle backward. The tool describes historical conditional averages, not forecasts with demonstrated predictive power. Its outputs depend on the instrument, history, settings, and sample sizes, which should be checked before interpretation. The author also warns that longer projection lengths can make calculations slow.

Key ideas

• The indicator groups readings of four bounded technical indicators into 20 five-point buckets.
• It calculates average subsequent price changes for each bucket, separating rising and falling indicator readings.
• Display controls select the indicator, projection length, bucket range, and line types.
• Sample counts are available to help assess how much historical data supports each path.
• The plotted paths summarize historical averages and do not establish predictive performance.

Tags

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