Uniform Moving Price Range
The quote of the currency pairs is the ratio of the asset's value. The change of the currency value leads to proportional quotes change of the corresponding currency pairs. This fact is reflected at charts as a synchronized price movement.
The "Uniform Moving Price Range" indicators shows the movement of price range (with unified range), it allow you to use it on the different currency pairs (which have common currency) with the same settings.
The indicator has only one input parameter:
- UniformHeight - the unified amplitude of the price range (around 1.00);
and forms 3 graphic series:
- Direction - movement direction "undefined" (0), "fall" (-1) and "rise" (1);
- Upper bound - upper bound;
- Lower bound - lower bound.
The construction began with the very first bar: the upper bound is set to High, the lower bound is set to Low price of the bar, the initial direction is set to "undefined". For the next bars it checks High and Low prices to detect the change of the price range. If the price range has changed, the range is adjusted. If the price range exceed the specified value, it adjust the opposite bound of the range and define new movement direction - "fall" - when price out the lower bound, "rise" - when price out the upper bound.
New position of the adjusted bound is determined by formulae:
- "fall" case: the position of upper bound must be less than:
UpperBound = LowerBound * ( 1.0 + UniformHeight);
- "rise" case: the position of lower bound must be greater than:
LowerBound = UpperBound / ( 1.0 + UniformHeight );
In case of the simultaneous breakout of the ranges, the movement direction is set to "undefined", the High and Low prices of the bar are used for the upper and lower bounds.