Energy Remainder based on ATR % passed

2023年10月12日

Description:

This indicator presents a visual representation of the percentage of the Daily Average True Range (ATR) that an asset has covered. The core idea behind the indicator is to gauge the remaining “energy” or potential price movement capacity of an asset within the trading day. By comparing the current intraday range to the daily ATR, traders can determine if there's still room for the asset to move, and hence, if it's an opportune moment to take a position.



Concept:

The indicator primarily helps in understanding how much of the daily ATR an asset has covered. If an asset has covered less than 50% of the ATR, it implies that there's still significant energy left. In other words, there's a good potential for further movement, making it a viable point to consider entering a trade. Conversely, if an asset has covered more than 50% of the ATR, the remaining energy or potential for further significant movement is low. In such scenarios, entering a trade might be late, as the potential returns could be limited.

Usage:

1. Green Bars: Represents the asset has covered less than 50% of its daily ATR. This suggests there's still ample energy left, and the asset has the potential for further movement.

2. Orange Bars: Indicates the asset has covered more than 50% but less than 100% of its daily ATR. It implies that the asset has used a good chunk of its daily range, but there's still some energy left.

3. Red Bars: Represents the asset has covered more than 100% of its daily ATR. This typically suggests that the asset has exhausted its daily range potential, and there's limited energy left for significant movement.

Considerations:

While this indicator provides valuable insights into the potential price movement of an asset, it's always recommended to use it in conjunction with other technical analysis tools and methods for a comprehensive trading approach.

Happy trading!