There are many ways to project price levels when looking at uncharted territory (e.g. new highs). Elliot Wave, Gann, fractals, Fibonacci, or a measured move, all are methodologies that can provide levels to watch to predict range expansion when there is no price to reference.
In this lesson, I show how to use another approach, utilizing the 7-Day Average True Range (ATR) and the prior session Point of Control (POC).
Settings ATR Period: 7 Day EMA
P.S. I didn't mention in the video, but check out how well an ATR Projection worked leading into Jackson Hole Friday. 4470 prior day POC to a high the next day at 4510. I went to California schools, so math ain't my strong suit, but I think that's 40 points or 1 ATR.
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Ding, ding - ES almost hits 4546, the ATR projected high, in the next day session. 8/30 Daily High print 4542.25 NQ exceed 1ATR move to high print of 15677, more than 1 ATR move.
What indicator do you use to chart this automatically?
RodCasilli
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@SkeltonWitch, I don't have one for TradingView. We call it ROP - rule of projection - and it's on another platform.
NightCommando
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Thanks for this, have you tried using the ATR Bands? They project on the chart the range directly and I find it super useful and especially precise at nailing daily tops and bottoms.
Never combined them with volume so far though.
RodCasilli
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@NightCommando, yes, I use ATR bands on higher timeframes to select option strikes. I don't have them applied to my futures trading timeframe charts 'cause I have a 2 indicator per timeframe max. :)