OPEN-SOURCE SCRIPT
ADR: Average Daily Range
Updated
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 author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
Disclaimer
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