How to normalize percentage difference across all time frames?
dino2007: How to calculate an uniform value of change between e.g. OPEN - CLOSE && OPEN - HIGH && LOW - CLOSE across all timeframes
For example, percentage difference between OPEN and CLOSE will be higher on 1H data then on 5M data.
How to normalize percentage difference across all time frames?
There are probably many ways to go about it, but you could use the Average True Range (ATR) to normalise the price change across time-frames
- eg. ( Open - Close ) / ATR, ( Open - High ) / ATR, ( Low - Close ) / ATR
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How to calculate an uniform value of change between e.g. OPEN - CLOSE && OPEN - HIGH && LOW - CLOSE across all timeframes.
For example, percentage difference between OPEN and CLOSE will be higher on 1H data then on 5M data.
How to normalize percentage difference across all time frames?