Project standard deviations of custom price ranges between two time points for any day of the week with the Range Deviations° [Pro+]
Range Deviations° [Pro+]
Concept Introduction & Indicator Features
The Range Deviations° [Pro+] indicator allows you to project standard deviations of any custom price range between two time points for any day of the week.
The range will be defined and projected in two ways:
The distance between the highest and lowest wick.
The distance between the highest and lowest body
You can choose to show one over the other, or show both at once, depending on your trading style and ICT's teachings on the matter – bodies tend to represent activity of larger players, hence projections made on the bodies may point to important institutional levels; wicks "do the damage" and may provide more confluence with ICT PD Arrays of interest.
Once configured, this tool gives you the ability to automatically plot points of reference based on your Time model of choice. For example:
Project the Friday's Asian Range throughout the next week to get parameters for High Probability PD Arrays.
Project the Monday Range to define the expectations for the weekly expansion and weekly candle development.
Project the Daily Index Opening Range (9:30-10:30) of every day to estimate important Points of Interest intraday.
Indicator Features:
Project standard deviations based off custom time windows.
Ability to choose between wick based projection and body based projection
Display historical deviations
Extend the range deviations to the right until custom time
Alerts on the market crossing the deviations
Default deviations go up to 5, with the possibility to add 4 custom deviations
Fully customizable appearance
Data table displaying range values
Show/Hide Text for Labels
By selecting “Show Text?”, one can Switch ON/OFF the ability to show or hide the labels for each level allowing for a cleaner look.
Day of the Week Filtering
ICT teaches that Time is essential for an analyst to monitor. At toodegrees, we want to give the analyst the choice to specify which Day of the Week to paint their Range Deviations. Some analysts only look to trade certain instruments on certain days at certain Times.
We implemented this choice to allow analysts clean charts, as well as highly Time specific layouts for various uses of this tool.
Analyst Insights:
This feature is very useful for analysts that employ specific. For example, a model that is based on the weekly profile: Tuesday High/Low of the week. In bullish conditions, when the expectation is for the weekly range to expand higher, ICT teaches that the low of the week likely forms on Tuesday. An analyst could position themselves on Tuesday and project deviations for profit targets or anticipating retracements. → Combine this with Average Range Levels° [Pro+] for an even stronger combination.
Range Time, Historical Sessions, and Extensions
Custom Range Timing
The session toggle allows the analyst to input their desired Time Range. Some analysts will look to implement certain range times like Central Bank Dealers Range, Asian Range, Flout, or other Time Based Ranges that can be deviated.
Giving the analyst to customize the Time Range allows one to have multiple layouts with different Time Based Ranges to study and analyze intraday. Be sure to check out a couple of our examples for inspiration on how to use the tool.
Analyst Insights:
With this setting analysts can customize the indicator to fit specific trading models. A good example is Charter Price Action Model 5. This model utilizes deviations of the Asian Range, Central Bank Dealers Range and the FLOUT, this model is applicable in the forex market. In the world of Index Futures analysts can for example project the Opening Range (09:30 - 10:00), the Asian Opening Range (18:00 - 18:30) and the London Opening Range (00:00 - 00:30) in order to build confluence with PD arrays on the chart.
In this chart you can see Range Deviations° [Pro+] applied with the Indices Opening Range time windows.
Extension Plot Settings
These settings will help allow you to customize the look and the plot style of the Range Deviation Levels.
Extend: move the Range Deviations right-end of the levels as “None” for no extension, “Alert Stdevs” for extension of only the Alert Lines, “Body Stdevs” for extension of Range Deviation Calculations using Bodies (Highest and Lowest Up or Down Close), “Wick Stdevs” for extension of Range Deviations Calculations using wicks (Highest or Lowest Candle Wick or Tail), or “All” to extend EVERY and ALL historical and current Range Time Levels.
Time Extend: this selection allows a user to Extend the lines until NY Midnight (0:00 EST), 1 Day (New Day Open/Close), or 1 Week (New Week Open/Close).
Analyst Insights:
To come back to the Price Action Model 5 example, ICT teaches that the deviations from previous days can be extended throughout the week. If there are price levels that have overlapping deviations aligned with PD Arrays, that it signifies a stronger conviction. By selecting Time Extend: 1 Week, analyst can project these deviations throughout the week.
Normal and Custom STDEV
Normal STDEV
By selecting the individual [+/- (Number)] will allow the analyst to easily toggle deviations they would like to see. If one does not want to see all 5 default Stdev, select and toggle the ones that fit your model!
Analyst Insights:
For some strategies analysts might need more projections, when working with very large expansions for example. Another use case is specific deviations, such as 2.5 3.5 4.5 etc. When utilizing Monsterlab’s approach to standard deviations and stages that can be expected at different deviations analyst can use the indicator to apply those concepts. → Combine this with the free IPDA Standard Deviations [DexterLab x TFO x toodegrees] indicator to strengthen this approach even more.
Body and Wick Style Settings
ICT teaches analysts to pay attention to both Range Bodies and Range Wicks (Highest Open or Close). Here at toodegrees, we want to give analysts the option to choose which range they would like to deviate. Toggle on either the Range Wicks or Range Bodies or Both!
Analyst Insights:
The ability to choose between body and wick deviation is crucial, as per trading model it might differ. Price Action Model 5 for example, solely makes use of body based deviations. But if analysts make use of other strategies where the wicks are needed, it can be selected too.
Central Bank Dealers Range deviations from the bodies of the candles.
Line Customization
Some analysts may differentiate their ranges by adjusted line thickness as well as color. The Line Customization feature allows analysts to choose which style lines they would like to see plotted. The default is set to dotted, however, it may be easier for the analyst to differentiate the Range Bodies and Range Wicks by toggling a Solid or Dashed Line instead of keeping both lines the same style. Additionally, one can adjust the line width right next to the line style.
Data Table
By selecting “Show Data Table?”, the analyst will see a table appear including details of the Range Time Values in Wicks as well as Bodies. The table will record a rolling 6 day basis of range values (The past 5 days as well as the current day).
The user is given the ability choose toggles for where to position the table as well the size of the font for the table values.
Analyst Insights:
The data table is an important feature when using the Asian Range or CBDR deviations. These time based deviations require a minimum amount of pips for the range in order to be a valid anchor for deviations.| The ideal range of pips for the CBDR is above 15 pips to be considered for deviations. The ideal Asian Range count is 20+ pips to be considered for deviations.