A dynamic volatility indicator that calculates price range and provides adaptive stop-loss levels based on recent market movement, helping traders manage risk more precisely.
Explore complementary indicator rolesHow it works
The True Range Original indicator analyzes the price range across a specified number of recent candles, typically 15, by calculating the difference between the highest high and lowest low. It plots this range value directly on the chart and generates four dynamic stop-loss levels: two for long positions (at 1x and 1.5x range) and two for short positions (also at 1x and 1.5x range).
These stop levels are color-coded and update dynamically, allowing traders to adjust their risk management strategy based on current market volatility. The indicator recalculates and displays a floating label with the current range value every five candles, providing real-time insights into price movement.
Why it may be useful
Traditional fixed stop-loss strategies can expose traders to unnecessary risk by not accounting for changing market conditions. This indicator solves that problem by creating adaptive stop-loss levels that directly reflect recent price volatility, helping traders protect their capital more intelligently.
By providing a data-driven approach to risk management, the True Range Original enables traders to make more informed decisions about position sizing and potential market movements. The visual representation of range and stop levels helps traders quickly understand and react to changing market dynamics.
When to explore it
This indicator is most effective for short-term trading strategies, particularly for scalpers and day traders working on lower timeframes like 1-minute charts. It excels in markets with significant price fluctuations where understanding recent volatility can provide a critical edge in trade management.
Traders should use this tool in conjunction with other technical analysis methods, such as support/resistance levels, volume indicators, or trend analysis. It is particularly useful during periods of market uncertainty or when trading assets known for rapid price movements.
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
