OPEN-SOURCE SCRIPT
Updated ADR: Average Daily Range
Very basic script... adjust the EMA to 13 for stocks, and less volatile assets. 26 for crypto, and anything highly volatile.
When the Daily Low line (bottom yellow/orange line) dips hard, and finds support for 3+ bars somewhere, this is a sign of a trend reversal. For a solid confirmation, wait for the Super Average and EMA to spike downwards as well. All of this can also be seen as reversal at the top of a trend, just upturned.
The 2 Daily lines (2 yellow/orange lines) act as support for the price to bounce off of. Fine tuning is required to get these really smooth, but it's a simple enough idea.
Edit: Screwed up the EMA in my posted example. Should be 26.
When the Daily Low line (bottom yellow/orange line) dips hard, and finds support for 3+ bars somewhere, this is a sign of a trend reversal. For a solid confirmation, wait for the Super Average and EMA to spike downwards as well. All of this can also be seen as reversal at the top of a trend, just upturned.
The 2 Daily lines (2 yellow/orange lines) act as support for the price to bounce off of. Fine tuning is required to get these really smooth, but it's a simple enough idea.
Edit: Screwed up the EMA in my posted example. Should be 26.
Release Notes
In this version, I've added an input for the length of the EMA, and names for the plot functions.Release Notes
General clean up here. Numbers are now simplified to one decimal place, and shown as an integer, not a float. The EMA has been changed to a SMA, due to better reaction and confirmation in testing.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.