Investing & Trading

True Range Indicator Study

By Samantha Baltodano


TL;DR:

The True Range indicator is a measure of market volatility that takes into account the gap between the current high and low, as well as the previous close.


What Is the True Range Indicator Study?

The True Range indicator plots values of the True Range Function. It measures the daily range plus any gap from the closing price of the preceding day.


The True Range is the greatest of the following:


  • the difference between the current high and the current low
  • the difference between the current high and the previous close
  • the difference between the previous close and the current low


Basically, the Close for the previous period is substituted for the current Low, if lower, or for the current High, if higher.

True Range Indicator is just one of many studies that Archaide automates. For a full list of strategies and studies available click here.


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