Visualizing Percentage Price Levels Above and Below a Reference Price

Summary

This post presents a chart overlay that marks percentage levels above and below a selected reference price, which can be either the current close or open. The plotted bands range from small increments to wider moves on both sides of that price. Text labels mark each level, while the current high and low are annotated and short segments are drawn beyond them. The indicator is configured to draw on the latest bar, with a displacement setting controlling label placement.

The tool is a visual scale for gauging price movement at a glance; it does not generate entry or exit signals, estimate volatility, or specify a trading rule. The author provides no performance evidence or guidance on choosing the reference price or interpreting the bands. Its usefulness therefore depends on the trader's chart-reading context, and the fixed percentage spacing may not reflect changing volatility or the behavior of different instruments.

Key ideas

• The overlay displays percentage bands above and below a chosen open or close reference price.
• The labeled levels provide a visual scale for comparing price movement with the reference.
• The indicator also labels the latest high and low and draws short segments outside them.
• The post presents a chart aid rather than a tested trading signal or strategy.
• Fixed percentage bands may not account for changing volatility across markets or periods.

Tags

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