Joe Ross
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Try this idea: take the three-day average daily range and find the absolute
difference from the ten-day average range. Project tomorrow's range equal to the three-day average range plus or minus the absolute value from the ten-day average range. Define the trend, assume the open to be within 20% of the daily high or low, then project the high and low for tomorrow as soon as the market opens.
Example: Say the three-day average range is 400 points, and the ten-day average range is 320 points. There is an 80 point absolute value difference, which is added
and subtracted to the three-day average range. This means the next day should
have a minimum range of 320 points to a maximum range of 480 points.
This range may be used for profit objectives. If the previous day was confirming of bullish price action and you have bought a lower opening, expect a minimum 320
points from the intraday low to be a profit objective. The three-day average range relationship to the ten-day average range, expresses the strength or weakness of
the most recent price movement and its probability of continuation.
I have not tried this on intraday charts, but give it a whirl, see if the principles above hold true. In fact, I'd really like to hear from every/anyone who makes the effort.
difference from the ten-day average range. Project tomorrow's range equal to the three-day average range plus or minus the absolute value from the ten-day average range. Define the trend, assume the open to be within 20% of the daily high or low, then project the high and low for tomorrow as soon as the market opens.
Example: Say the three-day average range is 400 points, and the ten-day average range is 320 points. There is an 80 point absolute value difference, which is added
and subtracted to the three-day average range. This means the next day should
have a minimum range of 320 points to a maximum range of 480 points.
This range may be used for profit objectives. If the previous day was confirming of bullish price action and you have bought a lower opening, expect a minimum 320
points from the intraday low to be a profit objective. The three-day average range relationship to the ten-day average range, expresses the strength or weakness of
the most recent price movement and its probability of continuation.
I have not tried this on intraday charts, but give it a whirl, see if the principles above hold true. In fact, I'd really like to hear from every/anyone who makes the effort.
