True Range Indicator
True Range was introduced by J. Welles Wilder in his book New Concepts in Technical Trading Systems. It measures the daily range plus any gap from the closing price of the preceding day.
True Range is calculated as the greater of:
- High for the period less the Low for the period.
- High for the period less the Close for the previous period.
- Close for the previous period and the Low for the current period.
Basically, the Close for the previous period is substituted for the current Low, if lower, or for the current High, if higher.
The default True Range indicator is normally set to Daily. Weekly or Monthly are of limited use.
See Indicator Panel for directions on how to set up an indicator.