Average Range

Average Range is a client side VTL predictive indicator used to determine probable range of the current candle, based on the range of the historical ranges.

The Range of a candle is defined as High minus Low of the particular candle. The Average Range is defined as the average of ranges of all the candles on that chart. This indicator comprises of two lines, upper Green line and the lower Red line. The upper Green line is calculated by adding the Average Range to the current Open price of the candle. The lower Red line is calculated by subtracting the Average Range from the current Open price of the candle.

Based upon historical ranges, the current candle should trade between the green and red lines. This indicator can be used to determine where to place profit targets and stop-losses. It can also be used to trade breakouts in strong trending markets or for reversal trades in Sideways markets. Breakout Trading Method (Trending Markets) BUY – Take Buy position when price crosses above the GREEN line, and place stoploss (SL) below RED line. SELL – Take Sell position when the price crosses below the RED line, and place stoploss (SL) above GREEN line. Reversal Trading Method (Sideways Markets) BUY – Take Buy position when price crosses below RED line, and place target (TP) at GREEN line. SELL – Place a Sell when price crosses above GREEN line, and place target (TP) at RED line.

Usage

• Download the attachment.
• Copy it to your company VertexFX  Local VTL Files folder i.e. C:Program FilesCompany Namevtl10Local VTL Scripts
• Restart your Client Terminal or Right Click on “Local VTL Scripts” Tree Node to find the script.