Using the Amplitude Indicator to Assess Price Swings and Volatility

Summary

The document describes an indicator that reports the minimum and maximum amplitude over a chosen period. It presents the measure as a way to observe volatility and the size of past price swings, and as a possible substitute for ATR. A relative amplitude percentage is also mentioned in the update history. The suggested lookback settings are 55,200 periods on a one-minute chart or 2,400 on an hourly chart, described as covering 40 sessions of 23 hours each.

The author suggests using the measure to identify unusually large moves that might reverse or continue, with volume or standard deviation methods providing additional context. No calculation details, trading rules, test results, or evidence of predictive performance are provided. The indicator is therefore best understood as a descriptive measure of historical range; the document does not establish that it can forecast future moves or replace a risk-management method.

Key ideas

• The indicator reports minimum and maximum amplitude over a selected lookback period.
• It is presented as a volatility measure and a possible alternative to ATR.
• Relative amplitude expresses the measure as a percentage.
• The document suggests supplementing amplitude observations with volume or standard deviation analysis.
• No performance evidence or detailed calculation method is supplied.

Tags

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