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Answer |
To access the range over a recent period, you can use
the True Range indicator...setup with "Actual Range of last X bars"
checked. For instance, if you're looking at daily data and you want the
range over the last 4 weeks (20 days), I would setup True Range with
"Actual Range of last 20 bars". Then for consolidation, you might look
for that range to be less than some specific number...
TR < 2
Or less than some percentage of price (5 below)...
TR < (CL * 0.05)
Or for a breakout, you might look for today's high or low to be outside
that range for the previous days...
HI > TR.1 OR LO < TR.1And to combine the two, looking for a breakout
of a consolidation period which had a range less than 2, use...
TR.1 < 2 AND (HI > TR.1 OR LO < TR.1) |