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Carl Soderholm wrote:
snip>
Here is a simple volatility paintbar for groups discussion. I'd be very
interested in comments and improvements.
Input: LookBack(10), RngLimit(2);
If Highest(High, LookBack) - Lowest(Low, LookBack) < RngLimit *
Average(TrueRange,30) then begin;
Plot1(High,"PBHigh");
Plot2(Low,"PBLow");
IF CheckAlert Then Alert = TRUE;
End;
<snip
My recent work has focussed on using volatility and adaptive indicators to
identify congestion areas, an indication of a market changing states from
sideways to trending or visa versa. This is an interesting adaptation of a
volatility indicator which Carl has posted.
As, in my opinion, the Holy Grail dances near the exit door, I am working
with this paintbar study to help define exit points. I have found that the
indicator is much more adaptive to the current state of a market if the
Average(TrueRange) LookBack period is made to be the same as the LookBack
period of recent Highs and Lows.
Anyone working with this study may want to try this. Just an idea to try if
it fits with your trading style and market perspective. BTW, I am working
with it on 1 minute spoos.
Best regards and profitable trading
Rod Wheeler
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