Range Marker

#range #support-resistance #projection #swing #dynamic 

The Range Marker projects dynamic high and low boundaries around current price based on recent candle structure. It measures how far price typically extends above and below the closing price over a short window, then uses those average distances to draw projected upper and lower markers. Think of it as drawing a flexible channel that adapts to recent price behavior instead of using fixed percentages or volatility bands. 

Default period: 10 

Line behavior: 

Produces two projected lines: an upper marker and a lower marker. The upper marker sits above price and represents where highs tend to form based on recent candle patterns. The lower marker sits below price and represents where lows tend to form. Both lines move with price and adjust as recent candle structure changes. 

Useful readings: 

– Price near upper marker: Price is at the expected high of its normal range — potential resistance zone 

– Price near lower marker: Price is at the expected low of its normal range — potential support zone 

– Price breaking above upper marker: Unusually strong bullish move beyond normal range 

– Price breaking below lower marker: Unusually strong bearish move beyond normal range 

– Wide marker spread: Recent candles had large upper and lower wicks — higher intraday volatility 

– Narrow marker spread: Recent candles were tight — lower intraday volatility, possible consolidation 

Objective rules: 

– Consider selling or taking profits when price reaches the upper marker 

– Consider buying or adding positions when price reaches the lower marker 

– A break above the upper marker with follow-through confirms strong bullish momentum 

– A break below the lower marker with follow-through confirms strong bearish momentum 

– In a trending market, expect price to repeatedly test and break the markers in the direction of the trend 

– In a ranging market, the markers act as dynamic support and resistance levels 

What makes it unique: 

Unlike fixed Bollinger Bands or ATR channels, the Range Marker is built purely from the relationship between close, high, and low. It reflects actual candle shape rather than statistical deviation, making it especially useful for traders who watch intraday price action and want projected levels that match recent candle behavior. 

The indicator table value in TradePoint & RZone also provides you with a list of all values of this indicator for any group of stocks. This will allow you to compare the readings of this indicator across different stocks.

The indicator is applicable to all types of charting. Calculated based on the number of columns on P&F charts, bricks on Renko charts, lines on Line-break charts, candles on Heikin ashi charts, and lines on Kagi charts. While the formula and reading of the indicators remain the same, they become more dynamic on these charts.

This indicator is also available in the System Builder of RZone & TradePoint for all charting methods. Using the system builder, you can develop various strategies based on the different conditions already present in this indicator. Additionally, it can be used with other indicators or price patterns to develop effective trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.