Shadow Range Index

alphaXiom Actualizado   
Shadow Range Index (SRI) introduces a new concept to calculate momentum, shadow range.

What is range?

Traditionally, True Range (TR) is the current high minus the current low of each bar in the timeframe. This is often used successfully on its own in indicators, or as a moving average in ATR (Average True Range).

To calculate range, SRI uses an innovative calculation of current bar range that also considers the previous bar. It calculates the difference between its maximum upward and maximum downward values over the number of bars the user chooses (by adjusting ‘Range lookback’).

What is shadow range?

True Range (TR) uses elements in its calculation (the highs and lows of the bar) that are also visible on the chart bars. Shadow range does not, though.

SRI calculates shadow range in a similar formula to range, except that this time it works out the difference between the minimum upward and minimum downward movement. This movement is by its nature less than the maximums, hence a shadow of it. Although more subtle, shadow range is significant, because it is quantifiable, and goes in one direction or another.

Finally, SRI smoothes shadow range and plots it as a histogram, and also smoothes and plots range as a signal line. Useful up and down triangles show trend changes, which optionally colour the chart bars.

Here’s an example of a long trade setup:

In summary, Shadow Range Index identifies and traces maximum and minimum bar range movement both up and down, and plots them as centred oscillators. The dynamics between the two can provide insights into the chart's performance and future direction.

Credit to these authors, whose MA or filters form part of this script:
@balipour - Super Smoother MA
@cheatcountry - Hann window smoothing
@AlgoAlpha - Gaussian filter
Notas de prensa:
Added user control over all colour elements. Also, added theme:
Script de código abierto

Siguiendo el verdadero espíritu de TradingView, el autor de este script lo ha publicado en código abierto, para que los traders puedan entenderlo y verificarlo. ¡Un hurra por el autor! Puede utilizarlo de forma gratuita, aunque si vuelve a utilizar este código en una publicación, debe cumplir con lo establecido en las Normas internas. Puede añadir este script a sus favoritos y usarlo en un gráfico.

Exención de responsabilidad

La información y las publicaciones que ofrecemos, no implican ni constituyen un asesoramiento financiero, ni de inversión, trading o cualquier otro tipo de consejo o recomendación emitida o respaldada por TradingView. Puede obtener información adicional en las Condiciones de uso.

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