The Price Ranges Indicator is a technical trading tool that assists traders in predicting the price level that the market may reach in the next few trading sessions. This helps traders determine where they should set their take profit targets when trading short-term momentum
What is the Forecasting of Price Ranges Indicator?
The Price Ranges Indicator for Forecasting is a specialized technical tool that gives traders an estimate of the possible price range for the next candle.
The indicator creates a vertical rectangle that serves as a backdrop for the candlesticks. In this specific layout, the indicator draws a background box in dodger blue. This box helps to identify the possible price range for the current candle as it evolves.
When the previous candle is long, the indicator plots vertical boxes that are typically lengthier. On the other hand, if the prior candle is short, the boxes tend to be shorter as well.
Additionally, it projects the range in the same direction as that of the previous candle; if it was a bullish one, then the range shifts upwards while a bearish previous candle results in a downward shift of range.
How to use the Forecasting of Price Ranges Indicator for MT4
The Price Ranges Indicator’s forecasting tool only has a few customizable options that can be adjusted in its indicator settings.
“colir” allows users to modify the color of the vertical rectangle that the indicator plots as a background to represent the price range.
“barsToProcess” allows users to set the number of candles that the indicator would process from the historical price feed and plot vertical bars on.
Conclusion
The Price Range Indicator forecast can serve as a valuable technical tool for traders. With this indicator, they can predict the potential price range that the market may reach, taking into account the range of previous candles.
Traders who engage in short-term trading and are interested in tracking price movements spanning only a few candles will find this feature especially helpful
Nonetheless, its limited scope may render this indicator sometimes insufficient in predicting price trends. In such cases, traders can employ alternative technical indicators like the Average True Range (ATR) to identify longer-term price variations.
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