Rounded Price Bands for Short- and Long-Term Direction

Summary

This indicator rounds closing prices to a fixed increment and plots the resulting series as colored points. Rising rounded values are blue, falling values are red, and unchanged values are black, giving a quick visual cue about price direction. The increment is set by a parameter in the code, with the example using ten price units.

The indicator also builds four additional series that track rounded-price levels across runs of nonincreasing or nondecreasing values. These are returned alongside the close and the base rounded series to create layered bands intended to help assess direction over different spans. The document provides code and a brief description, but no chart, trading rules, performance evidence, or guidance on choosing the increment. Its directional display should therefore be treated as a visualization aid rather than a tested signal.

Key ideas

• The indicator rounds closing prices to a chosen price increment.
• It colors higher rounded values blue, lower values red, and unchanged values black.
• Additional series extend levels across sequences of rising or falling rounded prices.
• The document gives no evidence that the bands predict returns or improve trading results.

Tags

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