HRanges

Author’s indicator developed for the reversal strategy.

Indicator on the chart:


To add and configure this indicator, open the IndicatorsSetup window.

Colors.

Break Dn Color –color setup for range line during breakdowns.

Break Up Color –color setup for range line during breakups.

Flat Color –color setup for a flat line.

Maximum Volume Color –color setup for maximum volume line.

Other.

Volume Filter –manual setup of volume filter for the line, which displays the maximum volume level for each range. Optionally, you can choose this parameter manually, depending on the instrument’s liquidity. Value 0 turns off this filter.

Width – Width of the indicator lines.

HRanges building algorithm

Range begins to build from the first bar of each session and expands until two sequential bars are built beyond the limits of the local minimum or maximum of the range. Afterwards, the current range is fixed, and a new one is built.

In the building process, the current range is by default painted gray. After being fixed (when a break occurs), range changes its color to red or green, depending on the break direction.


Essence of the reversal strategy

RISK DISCLAIMER: Trading Futures and FOREX instruments involves substantial risk and is not for everyone. An investor could lose all the initial capital and more. Risk capital is the money that can be lost without compromising your financial situation and lifestyle. Trading must be performed using only risk capital, and only the people that have a significant risk capital should consider the possibility of participating in the trade. The results shown in the past may not be indicative of future results.

Short position:

  • Wait for the occurrence of the red range (breakdown) at the Daily high level.
  • Range cannot be narrow (minimum is selected for each instrument).
  • Limit orders are set for sale on the bottom level of the red range and/or on the level of the maximum volume of the range.
  • Stop orders are set on the local Daily high.

Long position:

  • Wait for the occurrence of the green range (breakup) at the Daily Low level.
  • Range cannot be narrow (minimum is selected for each instrument).
  • Limit orders are set for buy on the top level of the green range and/or on the level of the maximum volume of the range.
  • Stop orders are set on the local Daily high.