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Overview:

NS_CriticalAverages is a daily range detection indicator that identifies the average daily range as well as the projected close for the day. It can be very useful to know where the market is likely to trade if price action remains consistent with historical average volatility. This provides traders with important areas of interest that should not be ignored.

Purpose:

Traders need the Critical Averages software to remain aware of the anticipated playing field for the current day’s price action. The software plots upper and lower lines on the chart reflecting projected trading range. When prices expand out of this range, this can signal a shift to a trending environment.

Elements:

1. Projected Daily High/Low
2. Projected Close (both Up Close and Down Close)
3. Projections based on Historical Volatility
4. Customizable Lookback Period

Functions:

The Critical Averages software is best used by plotting the projected range boundary lines on your trading chart so that you remain aware of important areas of interest. If price respects these levels, it implies an oscillating environment. Breakouts of the range signify a potential move to a new area of equilibrium.

Problem Solved:

• Stops traders from ignoring market context
• Stops Traders from missing important support and resistance levels
• Stops traders from second guessing trending and oscillating conditions
• Stops traders from getting in at the wrong time or place